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matter was based on the consideration
that, even if war had been declared
between China and Japan, and His
Majesty's Government had adopted an
attitude of formal neutrality, there
would be no objection on legal grounds
to permitting Japanese charter ships,
of the type described in your telegram
No. 6 of the 4th January, to visit
Hong Kong for what may be regarded
as trading purposes. Such would not be
a case of the use of Hong Kong or its
waters by Japanese warships, and the
rules of neutrality do not impose any
restrictions on trading ships owned or
chartered by a Government which are not
employed in military operations.
Since
at present there is no formal state of
war between China and Japan, His Majesty's
Government are of the opinion that there
is all the less objection on legal grounds
to the granting of the permission in
question.
3.