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institution of a tribunal consisting of one British, one Japanese and one neutral member to decide whether a prima facie case had been established justifying the handing over of the suspects to the district court. His Majesty's Government undertook to be guided by the advice of this body. On the same day the counsellor of the Japanese Embassy in London was informed that enquiries were being pursued with regard to the four men in the light of further information that had been received, but that the proposed blockade would give rise to demands for counter action which it would be difficult for His Majesty's Government to resist. Also on the 13th June the Japanese army authorities at Tientsin issued a statement to the effect that the terrorists were undoubtedly guilty, the British Concession a hotbed of terrorism, the Japanese army had lost patience and the issue was no longer one of the four criminals, but extended to other alleged anti- Japanese activities in the concession and the pro-Chiang Kai-shek attitude of His Majesty's Government."

៥៩

198. On the 14th June, in accordance with previous pronouncements by the Japanese military authorities, the blockade of the British and French Concessions began. British subjects were held up and rigorously searched at the entrances to the concessions, while other foreigners were allowed to pass. On the same day His Majesty's Ambassador at Tokyo protested against the army's statement of the 13th June as conveying that forcible methods would be continued even if the four men were handed over. The Minister for Foreign Affairs stated that the Japanese Government for their part could not accept the proposed inter- national committee as the matter was one for direct settlement between the British and Japanese Governments. On the 15th June Sir Robert Craigie protested to the Minister for Foreign Affairs regarding measures being taken against British subjects at Tientsin, and, in particular, against those which involved discrimina- tion. The attitude of His Majesty's Government was further defined in a statement issued by the Foreign Office on the 16th June re-emphasising the lack of sufficient evidence to establish a prima facie case against the four suspects. The offer for a neutral committee remained open, although the Japanese had so far refused to accept it. Attention was drawn to the widening of the Japanese demands, particularly in connexion with Mr. Kawai's statement of the 24th May, regarding the future of the concessions, which raised the question of the rights of all Powers having treaty rights in China. If the new demands were persisted in, His Majesty's Government would have to consider what immediate and active steps they should take for the protection of British interests in China. This communiqué was criticised in a statement published in the Japanese press on the 18th June and believed to have been inspired by the Minister for Foreign Affairs. Japanese claims would not affect the rights of Powers having treaty rights in China, but the Japanese would have to take counter-measures to any British measures for the protection of British rights and interests.

199.

On the same day His Majesty's Ambassador was informed by the Minister for Foreign Affairs that the whole question might be taken up where it had been left at the conversation between Sir Robert Craigie and General Ugaki on the 22nd September, 1938. As a result of this conversation Sir Robert Craigie suggested to the Foreign Office the presentation to the Japanese Government of proposals for negotiations in Tokyo attended by representatives of His Majesty's Consulate General at Tientsin and of the Japanese authorities in China, on the basis of the withdrawal of the blockade, the maintenance of British authority in the concession, and the taking of all possible steps to ensure that the conces- sion was not used for purposes demonstrably prejudicial to the military or political interests of the occupying Power. On the 19th June His Majesty's Government authorised His Majesty's Ambassador to proceed on these lines while making it clear that the suggestion was a personal one and did not commit His Majesty's Government. On the same day, the Prime Minister stated in Parliament that His Majesty's, Government still hoped to reach a local settlement. They were fully alive to the reactions of the present dispute on the position of other British and international settlements in China, and were maintaining closest touch with the French and American Governments. Also on the 19th June the Japanese army authorities at Tientsin issued a statement criticising the British communiqué of the 16th June, and adding that if His Majesty's Government took economic measures by way of retaliation the military authorities would be at liberty to regard themselves as released from the obligation to protect the rights and interests of third Powers.

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200. On the 20th June His Majesty's Ambassador, after drawing the atten- tion of the Minister for Foreign Affairs to the indignities and privations imposed on British subjects as a result of the blockade at Tientsin and urging that immediate steps should be taken to stop these practices, left a written note of his personal suggestions for discussions in Tokyo with Mr. Arita, who agreed to consider it carefully. Meanwhile, the blockade was intensified and British subjects were subjected to further gross indignities under pretext of searching for arms and anti-Japanese documents. On the 21st June the United States Chargé d'Affaires informed the Minister for Foreign Affairs that the Japanese were making a grave mistake if they thought by avoiding the maltreatment of Americans they could hope to prevent a strong reaction developing in the United States to press reports regarding the treatment of British subjects. On the 22nd June the Prime Minister stated in Parliament that His Majesty's Government was still hoping that it might be possible by negotiations to settle the local issues. On the following day, however, Mr. Chamberlain informed the House of Commons that the Foreign Secretary was requesting the Japanese Ambassador to call in order to make clear His Majesty's Government's view of the intolerable insults to which British subjects had been subjected in Tientsin. On the same day, the Minister for Foreign Affairs informed His Majesty's Ambassador that he accepted in principle the proposal for negotiations in Tokyo, but drew attention to the unanimous desire of Japan that the United Kingdom should abandon its policy of assisting Chiang Kai-shek and follow a policy in line with that of the Japanese in China.

201. On the 24th June His Majesty's Government instructed Sir Robert Craigie to protest in the strongest terms regarding indignities inflicted on Mr. Davis, Honorary Agent of the New Zealand Government at Tientsin, and to demand that the Japanese Government should take immediate steps to stop these intolerable outrages. In addition to acting on these instructions His Majesty's Ambassador gave the Minister for Foreign Affairs on the 26th June particulars of further indignities. Mr. Arita replied that he was doing every- thing in his power to stop these searches. Sir Robert Craigie followed up these representations by pointing out on the 28th June to the Minister for Foreign Affairs how impossible it would be for the negotiations to proceed if indignities and discrimination continued.

202. At the end of the month the blockade of the concessions was still in force, though a slight improvement was reported in the situation as regards the passage of the barriers. Prices had risen considerably and there was a shortage of fresh food but no question of actual famine. A large number of British women and children had left Tientsin in the normal summer exodus to Peitaiho and other resorts. The intention to hold the discussions had been made public on the 28th June and the necessary preparations were proceeding; Major Herbert, superin- tending British Consul at Tientsin, was on his way to Yokohama in a British destroyer, and it had been agreed that the conversations should be attended by a representative of His Majesty's Embassy at Shanghai.

British Shipping.

203. On the 6th June His Majesty's Ambassador again urged on the Vice- Minister for Foreign Affairs the early release of the steamship Sagres, for whose arrest and detention there did not appear to be the slightest justification (see paragraph 158 of Political Diary for April). On the 30th June His Majesty's Ambassador made further enquiries and representations regarding the steamship Lalita, which was also still under detention. General representations regarding the detention of both ships and the stopping of British shipping were made by Sir Robert Craigie to the Minister for Foreign Affairs on the 6th June. It was made clear that His Majesty's Government could never agree to the exercise by the Japanese Government of belligerent rights in defiance of the generally recog- nised precepts of international law.

Restrictions on British Shipping in the Lower Yangtze Delta.

204. His Majesty's Ambassador informed the Vice-Minister for Foreign Affairs on the 6th June that it seemed to him a reactionary step for the Japanese authorities to start suppressing the legitimate trade which had grown up in the delta and he urged that the Japanese Government should send early instructions for the removal of these restrictions. At the same time, Sir Robert Craigie

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