4
Decypher.
Mr. Blunt (Canton).
D. By wireless
11th January, 1939.
11th January, 1939.
R. 2.30 p.m.
12th January, 1939.
No. 3.
•
NO DISTRIBUTION.
(61)
Addressed to Embassy Shanghai No. 7 of January 11th.
On receipt of your telegram No. 123 of November 11th 1938 (paragraph 1) I consulted Mr. Davidson of British Chinese
Corporation who denied that bondholders of Canton-Kowloon railway
were in any better position than those of railways around Shanghai.
This point is important since the Japanese Consul-General in
conversation with me yesterday stated that he would go so far as
to recommend re-opening of railway provided that a formula could
be found to disassociate such re-opening entirely from other
railways in China so that no precedent would be created. He
pointed out however that he could allow no examination of railway.
2. I should be grateful for any suggestions for a suitable
formula but I propose to take no action until Mr. Davidson's
proposed visit to Canton about January 20th.
Repeated to Foreign Office No. 3, Governor of Hongkong
No. 10, Tokyo No. 3.