LIMITED DISTRIBUTION.
Decypher.
Sir A. Clark Kerr, (Shanghai).
10th August, 1940.
D.
By Wireless
10th August, 1940.
20
No. 696.
R. 10.15 p.m. 10th August, 1940.
IMPORTANT.
ddddddd
Addressed to Canton telegram No. 69 of 10th August.
Your telegram No. 101.
Instructions contained in my telegram No. 68, hold good and subject to the views of the Government of Hongkong you are authorised to work for the settlement proposed in your telegram No. 96 as modified by your telegram No. 99.
2. So far as Fatshan is concerned we have no power to compel but would [? grp. omtd.] to fall in with your proposals but you are authorised to tell the firm's representatives that these proposals have my entire approval and that I consider that [?in] the private owners interest and in the wider interests of British policy they ought to accept them.
3. Butterfield and Swire would still prefer to make no concession at all but for reasons given in my telegram No. 68 I do not consider that this would be desirable and I hope very much that you will be able to persuade the firms to accept the compromise now proposed. If Butterfield and Swire refuse to co-operate it may be matter for [? consideration] whether we should still be justified in withholding permission for the Japanese transports to visit Hongkong, but you should not use any such threat without reference to Hongkong and to
me,
Repeated to Tokyo telegram No. 257, Hongkong telegram No. 250, Commander-in-Chief telegram No. 67 and Foreign Office.
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