139 END

reasonably go further than this to meet them.

"R" ends.

Reference by Rear Admiral Sukigara to

desirability of local settlement leads me to suspect

a try-on as he must know that important point of

principle involved has already formed the subject of an

exchange of views between governments.

I fear that

unless we stand firm now we are bound to be in for

greater trouble later.

Repeated to Shanghai No. 931, Canton No. 18

and Commander-in-Chief

;

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