NO DISTRIBUTION.
Decode. Mr. Phillips (Shanghai).
August 16th 1938.
D.
Wireless.
August 17th 1938.
No.232.
R. 10.0 a.m.
(R).
August 17th 1938.
5F 57
Addressed to His Majesty's Ambassador Shanghai No.33 of August 15th.
Unfortunate incident has arisen in connexion with British
tug Victoria which is owned by Shanghai Tug and Lighter Company
Limited.
2. The Victoria was chartered to a Japanese company for a period of three months and on August 8th left Shanghai for Wuhu
with a cargo of "canteen stores" (a report from a reliable source
states that the cargo was munitions) which were loaded at
railway wharf at Woosung which is under Japanese control. On
leaving Woosung red ensigns on the ship-side were painted out
and Japanese flag substituted and the master was forced to
proceed under duress. The owners had no news of the vessel
(it does not carry wireless) until August 11th when they were informed that it had been seen aground and flying the Japanese
flag.
3. Instead of reporting the facts to this office the manager of the Tug and Lighter Company got in touch with the
Japanese naval authorities and secured from them a permit to
send