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Enclosure 2.
Summary of Cases.
1-Cases Settled.
1. Occupation by the Japanese authorities of British property in Shanghai.
In about ten cases the Japanese authorities have now evacuated British premises taken over by them without consultation with the owners. (There are, however, a number of important cases in which British premises have not been evacuated, and in those in which evacuation has taken place the questions of rent during occupation and compensation for damage have not yet been touched.)
2. Steam launch Weidah seized by the Japanese military at Shanghai on the
9th December, 1937.
Returned to the Shanghai Tug and Lighter Company on the 17th June, 1938.
3. Assault on Mr. Wilkinson at Shanghai on the 13th May.
Satisfactory settlement reached locally on the 26th May.
4. Ewo Cotton Mills, Shanghai.
Question of the housing of the operatives settled locally after lengthy
negotiations.
5. Sung Sing No. 7 Cotton Mill. Machinery was removed in May by Japanese
forces.
The Vice-Minister for Foreign Affairs informed His Majesty's Ambassador on the 8th June that the removal was a mistake and that the machinery had been restored. (The case cannot, however, be regarded as properly settled, since the Japanese authorities are still preventing the owners from operating the mill.)
6. Tobacco monopoly in Shansi.
Representations were made in Tokyo on the 12th August against the imposition of this monopoly at the orders of the Japanese military. His Majesty's Embassy were informed on the 31st August that the restrictions were shortly to be withdrawn.
7. Proposed monopoly of the distribution of oil, &c., in Meng Chiang.
Representations were made by His Majesty's Embassy on the 22nd July, and renewed on the 10th August and the 7th September. His Majesty's Embassy were informed on the 1st October that the ordinance controlling the distribution of petrol in Meng Chiang had been repealed on the 24th September.
8. Interference with the workings of the Chiao Tso Mines of the Peking
Syndicate.
Representations were made by His Majesty's Embassy on the 22nd July, and on the 2nd August His Majesty's Embassy at Peking received the information that the matter had been settled satisfactorily to the syndicate.
9. H.M.S. Sandpiper incident.
On the 24th October Japanese aircraft dropped bombs in the neighbourhood of H.M.S. Sandpiper at Changsha, causing damage to the ship. A satisfactory settlement was reached locally by which the Japanese Commander-in-chief expressed in writing his sincere regrets for the damage caused and undertook on behalf of the Japanese Government to defray the cost of necessary repairs.
10. Certain claims paid:
(a) Compensation in respect of personal injuries to sailors in the Wubu
incident: £920.
(5) Compensation in respect of soldiers killed or wounded as the result of
Japanese military action in Shanghai: £1,500.
(c) Indemnity in respect of material damage to H.M.S. Ladybird: £2,942.
(But see Claims under cases outstanding.)
II. Outstanding Cases.
A--General.
On the 26th July a memorandum was presented to General Ugaki giving a list of cases on which immediate action by the Japanese Government might reasonably be expected. No satisfactory measures have been taken on any point. First Repre- sentations.
Subject:
2 Interference with Customs Adminis-
tration.
Ja qumber of cases (Shanghai, Tsingtao, Chefoo, Amoy, &c.) Japan- ese authorities have interfered with the workings of the China Customs Administration
B. (A) Railways— ̈ ̈
Formal assurances requested regarding respect for British rights and interests in, China Railways. Sug- gests also payment by the Japanese of obligations on the earnings of the railways under their control
(B) Peking-Mukden Railway.
August 13
June 7
(1) Non-payment of Shanghai-Feng- October 11,
chiang Railway mortgage redemp-
tion loan 1913
(2) Non-payment of debt owing to Metropolitan Cammel Carriage Company
(1), and (2) being largely due to non-payment by the Japanese military for railway services)
(8) Access to functions denied' to British employees contrary to inter-
&
1937
national agreement and for totally regi insufficient reasons
(4) Construction of a parallel railway
to Jahol contrary to international agreement
(5) Unification of North China Rail- 78 reden (g_71
ways in complete disregard of the British interests involved and of international treaties governing them
(C) Taoching Railway.
Now that the Japanese are operating August 12
the Taoching Railway it is suggested that they should accept the obliga- tions on interest on the Hainan Railway 1905 gold loan
(D) Shanghai-Nanking and Shanghai-
Hangchow-Ningpo Railways.
(1) Denial by the Japanese authorities of all facilities to British engineer to survey lines on behalf of British bondholders, and failure to make arrangements for the payment of obligations to bondholders in spite of the fact that both railways are being used by the public and are earning revenue
[508 bb-1]
January 13 (Shanghai) April 20 (Tokyo)
Present situation.
Japanese reply dated August 25 touches on the specific points but gives no satisfactory explanation of Japanese action and no assurances for the future. :
No reply.
th
These various subjects have been men- 'tioned in repeated protests from October 1987 onwards. Though & general amúrafice was given in letter from Mr. Ishif on July 20, 1938, that there was no intention of infring- ing British rights, no satisfactory explanation has been given of the breaches of treaty involved in the actions of the Japanese authorities and no satisfactory action has been taken to respect the British interests which have been disregarded in these different ways by Japanese action.
¿
Japanese reply, September 15, states railway has been much damaged. and is being repaired by the Japanese who cannot accept the responsibility for payment of all the obligations.
?
General Ugaki informed His Majesty's Ambassador on September 8 that the region of the railways was an impor tant area in the rear of the Hankow operations. In response to further representations by His Majesty's Embassy, the Minister for Foreign Affairs replied on December 8 that no change whatever had occurred which would render a survey possible. The Japanese Government do not share the view of His Majesty's Government that the Japanese Government are partly responsible for damage to the live..
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