2.
22
moved by British ships under genuine charter to British or other
foreign companies thus making enforcement by the Japanese of [grp. undec.] (b) above much more difficult. This may be open
to the objection that it shifts the object of Japanese dislike
one step further back; instead of British ships bearing the brunt
of Japanese displeasure it would be borne by British trading
companies. It is therefore a question whether ships or companies
are more vulnerable. As far as shipping interests were concerned
the fact that they were no longer on Chinese charter or working
for Chinese Government monopolies would remove a source of
friction with Japanese navy and possibly enable us here to
secure an improvement of treatment of British shipping as a whole.
If British shipping interests would regard Japanese
requirements for the present as a natural obstacle which could not
be removed but in the meantime circumvented it would probably be
of more service to them than kicking against the pricks. When
His Majesty's Government are in a position to render effective
assistance a stand on principle would be more effective and
useful to British interests concerned than is likely to be the
case at present.
Addressed to Foreign Office No. 448 May 18th, repeated to
Shanghai No. 357, Hongkong No. 89 (Hongkong please pass to
Commander-in-Chief as telegram No. 86).