42
LIMITED DISTRIBUTION
Decypher.
Sir R. Craigie (Tokyo)
7th March, 1940.
D.
11.0 a.m.
Sth March, 1940.
R.
8.0 a.m.
8th March, 1940.
No. 403
WWW
Your telegram No. 169.
I regret that I see no prospect at all
of Japanese Government agreeing to admit any liability
or to pay any large sum in compensation. Only
alternative now the proposed solution is the vague
possibility of obtaining compensation as part of some
post war settlement of all our accounts with Japan
ractical question for the company is whether having regard
to the present shortage of shipping and high freights, it
would not pay them better to accept Japanese proposal than
to [?await payment] of compensation which we may never
be in a position to enforce.
2. I would not exclude the possibility of some
ex gratia payment based not on demurrage but on specific
expenditure incurred by the company other than
maintenance charges during detention, repatriation of the
crew etc. But this suggestion is purely my own and not
based on anything which the Vice liinister for Foreign
Affairs said. I suggested also that the case of Sagres
for compensation is stronger than that of Lalita.