1259

Subject.

7. Tientsin. Embargo on export of wool. Request for removal of embargo as

interfering with legitimate trade

8. Tsingtao. Discrimination

British shipping.

against

Since the capture of Tsingtao by the Japanese, British shipping has been prevented from using the commer- cial harbour

8

First Repre- sentation.

Present situation.

November 5 No reply, to note verbale of November 5

nor to further note of December 16.

April 1938 (oral) July 14 (written)

Reasons given by the Japanese Govern- ment, blockading of the harbour entrance and military necessity, have become out of date with the opening of the entrance at the beginning of August and the removal of the main area of hostilities to Central and South China. In November British ships were compelled to remain outside the harbour in a high wind, which pre- vented communication with the land, applications made to the Japanese naval mission for entry into the harbour being refused, although the berths were more than half empty. No steps have yet been taken by the Japanese authorities to open the harbour to any but Japanese trans- ports, and ordinary Japanese merchant ships; and discrimination against British ships continues

9. Tsingtao.

Refusal, in spite of frequent applica- tions, to allow Asiatic Petroleum Company's motor vessel Hai Kwang to enter Tsingtao harbour for the purpose of filling the company's oil tanks

October 22

No reply.

:

10. Tsingtao. Discrimination

British trade and banks.

against

In August a protest was made against December 8 No reply.

cargoes being held up because their export was not financed through the Yokohama Specie Bank. It was subsequently explained that they had really been held up for military examination, and they were released. Similar discrimination, however, reappeared in November when four export applications on the part of British firms were refused-notwithstanding the fact that the financing of one of them was arranged in Federal Reserve currency through the Bank Chosen

11. Tsingtao.

of

Forcible seizure by Japanese naval authorities of Customs vessel Haian at Tsingtao on June 21

June 23 July 6

a

to

Japanese Government took the line that

these seizures were necessary prevent arins smuggling. His Majesty's Embassy pointed out that the prevention of arms smuggling was matter for the Japanese armed forces, and that the Japanese proceed- ings, besides being high-handed, inter- fered with the workings of the Customs. No explanation has yet been given of the forcible eviction of the foreign officers and their replace- ment by inexperienced Japanese.

5

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