NO DISTRIBUTION.

128

Decypher.

Sir R. Craigie (Tokyo)

D. 11.45 p.m.

R. 6.15 p.m.

6th January 1939.

6th January 1939.

6th January 1939.

No.13.

00000000000000000000

(4)

6) Canton telegram No.2 addressed to Foreign Office.

On December 31st the Naval Attaché in an interview with

Aide de Camp of the Minister of Marine on the subject of

Tsingtao was given to understand that the conditions might improve in "the early spring" (which from a Japanese means not long after January 1st). Expression used was not explicit

but could also be taken as applying to Chinese coast in general.

Telegram No.72 from Tsingtao to changhai (not repeated to the Foreign Office) and shanghai telegram No.1699 to the Foreign Office both suggest that harbour will be open in mid-January. Canton telegram under re.erence states that the Japanese are

anxious for a settlement by January 15th.

It seems possible that the Japanese Government may intend to relax the pressure on foreign interests about the middle

Jan of Jane.

It is therefore clearly in the Japanese interests to

secure good bargains on all points before then and this may explain their apparent concession over the Hongkong-Canton

traffic question (paragraph 3 of Hongkong telegram No.6 to

the Colonial office). Before any definite arrangement is

made about this traffic these considerations should perhaps

be taken into account particularly in view of the possible

effect....

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