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dare to take the initiative in attacking a Japanese naval

vessel. But it is a definitely established fact that

there have been several instances, not only in this case

but before and after it, where these Chinese armed junks

have challenged with guns of old type or rifles small

Japanese naval craft at the time of their inspection of

the junks.

There is then, as hitherto, absolutely no room

for consideration by our side of the question of the

responsibility in regard to this case of the Imperial

Naval Commanding Officer concerned. But it is regretted

if there are British subjects who have suffered losses,

and, with reference to the question of their compensation,

I therefore desire to state our stipulations, which remain

unalterable as before, namely that we shall not grudge the

offer of a form of ex gratia payment to those of the

wrecked fishermen, in respect of whom documents containing

clear evidence establishing that they did not take part in

this aggressive action and that they are natives of British

territory, have been presented by the British side in

response to the request contained in the memorandum sent

to Your Excellency on the 29th January, 1938.

I avail, etc.

(sgd) Kazushige Ugaki (L.S.)

Minister for Foreign Affairs.

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