[T

Document is the Property of His Britannic Majesty's Government, and should be returned

to the Foreign Office if not required for official use.]

From CHINA.

139

Decode

and Decypher.

ir. Howe. (Shanghai).

January 15th, 1938.

D.

R.

(by wireless) January 16th, 1938.

6.15. p.m. January 16th, 1938.

No. 81.

-000-

"R" begins:

Consul-General, Shanghai, telegram No. 11 to me and my telegram No. 67 to Foreign Office.

Senior Naval Officer, Shanghai, having made notification in writing to Japanese Admiral of desire for small up river convoy of merchant vessels on January 18th or any other day convenient to Japanese, has received the following reply. Begins:

While it is the intention of the Japanese Navy to give facilities provided special reasons exists for passage of ships of friendly countries through channels opened in obstructions on the Yangtze it is not yet the right moment to agree to passage through obstructions to merchant vessels in general not serving a special purpose in view of present state of warfare and navigation and large amount of our shipping in movement for military purposes. I am therefore unable to agree to passage of two British merchantmen through obstructions on January 18th. Furthermore for the time being

I am unable to state what other time would be suitable for

passage through obstructions. End of "".

This was a test case and categorical nature of Japanese refusal throws doubt on sincerity of their earlier offer. It will be noted that offer is now limited by further provizo regarding existence of special reasons. I am at a loss to know what to suggest. It is true enforcement of right of passage has little practical importance at the moment since

trade/

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