NO DISTRIBUTION.
Decode.
Mr. Blunt (Canton),
8th November, 1938.
D.
W/T
8th November, 1938.
R.
3.30 p.m. 8th November, 1938.
No. 139. (R).
74
Addressed British Embassy Offices Shanghai No. 273 of
November 8th.
55)
My telegram No. 223.
On November 4th I informed Japanese Consul-General officially of handing over of control over Chinese section of Canton Kowloon Railway to special emergency committee. I have now received reply from him stating that Japanese authorities are not in a position to recognise any such committee and reserving the right to "claim any funds or other properties of the said railway which might have been handed over by Chinese to any unauthorized body".
2. I do not propose to reply until I have received reply to last sentence of my telegram No. 265 and any observations on my telegram No. 223.
3. May I take it that Canton Kowloon Railway is the only railway of which the whole property is mortgaged to bondholders? Repeated to Foreign Office No. 139, Governor Hongkong No. 191 (Hongkong please repeat to Tokyo as my telegram No. 61).