2.

60

Japanese are using the incident to make demands far wider and

more far-reaching than the question of the handing over of the

four men. Such demands would raise important questions of

policy, in which other Great Powers are concerned no less than

this country, and the closest touch is being maintained with the

French and American Governments.

In the meantime His Majesty's Government are considering

the situation created by the refusal of the Japanese to accept

their proposal for a committee of enquiry and by the continuance

of the blockade of the Concession.

Repeated to Shanghai No. 485.

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