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Back Room. Right hand Steel Cabinet. Bottom Drawer. 50

TRANSLATION OF INTELLIGENCE EXTRACTS No.189. 6/9/39.

(1) It was reported that Britain will make a loan of

£10,000,000 to Japan. At the same time, a British reporter

in Hong Kong has obtained secret information that the

British have complied with the request made by Japan to hand

over to the Japanese the whole of the silver deposited by

China in the British and French Concessions in Tientsin.

Britain has accepted all other conditions made by Japan.

They will be put into force separately.

We should pay

much attention to this and try to stop it.

(2) According to a Japanese spy stationed in Hong Kong

the Japanese at one time lodged the following three demands

to Britain:-

(1) To withdraw the Chinese Central Government's

organisations in Hong Kong.

(2) To impose a ban on the anti-Japanese presses and

oust the working members of the Central Govt.

(3) To allow WANG's clique to carry out open

activities in Hong Kong.

It is also said that these demands were accepted by

the Hong Kong Government under condition that the Japanese

troops stationed near British borders be evacuated. But

it is learnt from another source that such demands have

been rejected by the Hong Kong Government. Enquiries are

being made.

It is learnt from TO, the Chinese traitor, that the

SHUM-CHUN problem between Britain and Japan has reached a

compromise. One of the conditions in the demands made by

the Japanese provided the return to Canton of the Chinese

in Hong Kong.

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