[This Document is the Property of His Britannic Majesty's Government, and should be 20

returned to the Foreign Office if not required for official use."

76

(F 9836/6187/10)

To JAPAN.

Cypher telegram to Sir R. Craigie (Tokyo),

Foreign Office, 14th September, 1939.

7.00 p.m.

No. 603.

IMPORTANT.

18

Your telegrams Nos. 1162 and 1188 [of 5th and 8th September: Tientsin negotiations and Anglo-Japanese relations].

I am still anxious, if possible, for a settlement of the local issues at Tientsin. I realise the Japanese objections to discussions jointly with France and the United States, and in view of the difficulties raised by them, I should be willing to continue the negotiations on a bilateral basis, on the understanding that His Majesty's Government must be free to maintain close

consultation with those two Governments.

2. I find it difficult to believe, however, that silver would be effectually neutralised by placing it under seal in the Federal Reserve Bank or the Yokohama Specie Bank, and the only solution which is at all likely to be acceptable to the French and Americans as well as to ourselves would be sealing in a neutral bank. In any case you should keep in close touch with your French colleague on this matter, since bulk of silver is in French concession. Tientsin telegram No. 585 to Shanghai makes suggestion that the silver should be earmarked for relief purposes. At first sight, it appears to me very doubtful whether the silver would be so used if handed over, but, subject to Chinese concurrence and

suitable

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