SECRET

MESSAGE

FROM: Naval Liaison Officer, Shanghai.

IN.

33 35

DATE: 27.4.09.

RECD: 1765.

Interdepartmental Cypher.

ADDRESSED: C.in C. China repeated British Ambassador Tokyo,

British Ambassador Shanghai, Commodore Hong Kong, Admiralty.

IMPORTANT.

4)

My 1545 April 20th. I have today received a letter from

Vice Admiral Nomura containing Vice Admiral Oikawa's reply to

your message. Substance is as follows begins: while there

appears to be no doubt as to the nationality of the steamship

SAGRES being British

(a) her cargo was composed wholly of salt needed by

Chinese Government.

(b) she was operating under direction from Chinese

Government

(c) the handling of the cargo etc. was under the

supervision of Chinese regulars

(d) Among ship's crew were some not included in the

crew list and whose status is therefore not clear.

With foregoing facts brought to light it is difficult to

consider the activity of the ship as being merely that of

peaceful trade there being conclusive grounds for holding that

she was rendering military assistance to the Chiang Kai Shek

regime. Further enquiry into the details of the case is

therefore being continued.

1st Lord. D.C.N.S.

1st S.L.

2nd S. L.

Ends.

P.A.S.(S).

A.C.N.S. O.D. (3). PARL.SEC. D.N.I.(6).

3rd S.L. CIVIL LORD M.36. (12)

4th S. L. SEC.

B.A.

5th S. L.

D. of P.(3). NAVAL SEC.D.S.D.9.

1550/27.

0.1.C.(3).

Trade Div. (2). Foreign Office War Office Air Ministry

R. C. (3). \co

foof T

To be

sent by M.Branch.

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