Decypher.
No. 85.
25-
NO DISTRIBUTION.
Sir H. Phillips, (Shanghai).
5th June, 1939.
D.
(Wireless)
6th June, 1939.
R.
9.30 a.m.
6th June, 1939.
0:0:0:0:0
Addressed to His Majesty's Ambassador telegram No. 95
of 5th June.
My telegram No. 93.
Butterfield and Swire's S. 3.
clearance for Haimen on June 3rd.
approach Customs to secure clearance.
antung" was refused customs
Company requested me to
I replied that matter
was under discussion and that pending instruction I could do
nothing.
2. Even before present ban was imposed cargo trade at
Haimen (where guerillas are in control on shore) had been
virtually stopped by Japanese armed trawlers operating off the
port with result that British ships have been getting most of
their cargo from one or two small places in the vicinity which
had become outlet for trade of Haimen following the latter's
virtual closure.
3. Butterfield and Swire's "antung" and Jardine Matheson
and Company's S.3. "Liwo" both cleared this morning for these
places. Companies will thus be able to get nearly the same amount of trade as before the ban but as soon as Japanese realise the position they will doubtless extend the ban to all ports near Haimen so that the issue will have to be faced sooner or later unless Japanese can be induced to withdraw their ban.
4. This step is really an attempt to enforce tariff blockade through Customs machinery and thus save Japanese trouble of doing it themselves by direct naval action against Chinese controlled ports. If they can get away with this initial attempt they may be encouraged to extend the blockade by this method to all Chinese controlled ports including Treaty ports such as Foochow and Swatow thus forcing vessels to trade only at ports under Japanese control.
Repeated to Foreign Office, Tokyo No. 66, Commander-in-Chief No. 42, copy to Rear Admiral Yangtse, Liaison Naval Officer.