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2.
States Government will be in agreement with us as to
impossibility of yielding to this pressure to revise general policy towards China which has hitherto moved on parallel lines with that of the United States. It is evident that, if Japanese persist in this attempt, a difficult and dangerous situation is
likely to be created.
5. Please ascertain whether United States Government would
be willing to press the Japanese Government to allow local incident to be settled either by direct American mediation or by the proposed Committee of Enquiry. They could add that they have the assurance that His Majesty's Government would abide by any ruling given. The United States Government might urge that, if this were done, Japanese Government should recall measures taken against Fritish Concession.
6. I should hope that United States Government might find it possible also to represent to the Japanese Government that, if they persist in applying pressure to effect change in general policy of His Lajesty's Government in the Far East, that is bound to create a situation of great difficulty and danger which
must be of concern to other Powers.
7. I should be glad if you could get an early reaction on this suggestion from the United States Government and report to me immediately. If their reaction should be unfavourable, it might be well to point out that it is not impossible that the situation, if allowed to develop, might lead, through an armed clash, to hostilities in the Far East, with unpredictable extension. Short of that, the Japanese would almost certainly be encouraged to extent their action against foreign interests in other parts of China.
8. e cannot exclude the possibility that the Japanese are acting in collusion with the German Goverment.
Řepeated to Tokyo No. 294 and Shanghai No. 487.