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however, more doubtful whether the terms quoted above of the Treaty

would entitle the owners to conduct the salvage through foreign

instrumentality rather than through local British salvage agencies,

5. It is true that in 1937, at a time when the local British

firms were all very busy as a consequence of the disastrous typhoon

in September of that year, a Japanese salvage company was permitted

to salve the Asama Maru, but in view of the deterioration in the

international situation since that time, the local Naval and Military

Authorities are most strongly of the opinion that the present is not

the time to allow the Japanese facilities to establish a salvage

undertaking in a position so strategical as that held by the island

of Waglan. I am not aware that the Japanese would be willing to

allow British salvage companies to operate in similar strategical

regions in Japanese waters and it is well known that they refused

permission for foreign salvage companies to operate on the United

States of America S.S. "President Hoover", when she stranded off the

coast of Formosa at the end of 1937.

6. I should accordingly be glad if I might be authorised by

telegraph to refuse the application. The local Japanese Consulate

has also made a request in this behalf and is suggesting that next

month would be a favourable time to undertake the work. Refusal

could be made effective by denying any permission for the anchoring or mooring of vessels in the waters of the Colony, landing of gear, or import and storage of dynamite for this purpose.

7. I am sending a copy of this despatch to the British

Ambassador at Tokyo.

I have the honour to be,

Sir,

Your most obedient, humble servant,

LA hathcon Governor.

The

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