SECRET.
MESSAGE.
From C. in C. China.
IN.
DATE 11/8/39. 23
EXC'D. BEC D. 2125.
INTERDEPARTMENTAL CYPHER. CORRECTION RECD.1725/13.
Addressed: Admiralty, repeated Ambassador Shanghai, 704,
Commodore Hong Kong 458, Ambassador Tokyo, 523, N. L.0. Consul General Shanghai.
782.
N.L.O.'s 1053 July 26th. I have replied in
writing to Admiral Oikawa's letter and copies have been sent
Shanghai and Tokyo. I have again pressed
to Admiralty.
for release of SAGRES as I consider we have a good case.
This does not apply to the cases of LALITA and DHOLERA and I
have left paragraph (c) of above signal unanswered.
I entirely agree with Ambassador Tokyo's remarks
contained in his 448 to Foreign Office and activities of
firms such as the owners of LALITA and DHOLERA are nothing
but an embarrassment to British Authorities. On the other
hand, although more respectable British firms do not charter
to Chinese, it might alienate Chinese goodwill on which what
little trade is at present available depends if we were to
intimate to Shipping Companies generally that they must not
charter to Chinese Government or Chinese firms.
To answer to paragraph (d) in either the
affirmative or negative would be to establish a principle
which might have far-reaching results, and the argument that
these two are British Ships and therefore illegally seized,
though correct in theory is doubtful from realistic point
of view/