[This Document is the Property of His Britannic Majesty's Government, and should be returned to the Foreign Office if not required for official use.]

From CHINA.

Decypher.

Sir A. Clark-Kerr (Shanghai)

15th June, 1939.

D.

R.

8.24 p.m.

3.30 p.m.

15th June, 1939.

15th June, 1939.

No. 555.

mmmmmmmmmmmm

61

81

IMMEDIATE.

69 Tokyo telegram No. 556.

I confess that Sir R. Craigie's proposal fills me with

concern.

2. The issue seems to be a nicety of morals rather than

of law. It is arguable that in the first instance we held

too fast to our sense of justice, but the situation now is

that Japanese are without any legal niceties trying by

blackmail to force us to submit to their solution of a

question from which we have been cutting a fair and just way

of escape.

Indeed it no longer seems to be a solution for

Sir R. Craigie says that if the men are handed over he will do

his utmost to obtain cancellation of repressive measures

which suggests that he himself is doubtful whether the

actual handing over means that the measures will necessarily

be abandoned.

3.

As I see it position now is that if we give way

Japanese will be persuaded that they have but to put enough pressure upon us and we will do whatever they want anywhere

in China. Yielding at Tientsin will mean increased pressure

at Kulangsu followed by Shanghai.

4. Sir R. Craigie considers we are risking our whole

position in North China by our present attitude. My view

is/

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