SECRET

25

Po poction above

MESSAGE

From: C. in C. China.

Addressed:

782.

Interdepartmental Cypher

IN

DATE:

11.8.39.

REC'D: 2125

Admiralty, repeated Ambassador Shanghai, 704, Commodore Hong Kong, 458, Ambassador Tokyo, 523, N.L.C., Consul General Shanghai.

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 caso. This does not apply to the cases of LALITA and DHOLERA and I have left paragraph (d) 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 DHCLERA 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 (?detained) are British Ships infers having been illegally seized, thcagorrect in theory is wholly absurd (corrupt group)

point of view.

4

Pimples

There/

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