IR REGISTRATI
CYPHER TELEGRAM.
O。A.Go
FROM
Ad
D. 3rd August.
Re
8.47 a.m. on 3rd August, 1940.
INMEDIATE.
HONG KONG.
No. 77%
?August Addressed to S. of S. for Cols, telegram No. 477 July
3rd. Repeated to Canton telegram No. 37, Shanghai telegram No. 159, Tokio telegram No. 85.
51
41
Canton telegram No. 98 and telegram No. 9 to Shanghai repeated to
F.0.
Pilot fees. I have informed Consul General that in view of the retention of FATSHAN permission gæented to HCI MARU to enter Hong Kong on 4th August has been withdrawn.
I feel however that Japanese demands although apparently excessive do not involve serious question of principle and fear enmity may jeopardise economic relations for opening Pearl River to trade.
On the latter question while appreciating anxiety of shipping companies not to prejudice future of the Yangtse I feel some doubt whether eufficient weight has been given to Imperial interests outside those of the firms mainly concerned. It may now be too late to expect improvement in the general relations from local (corrupt group) but Prom the point of view of Hong Kong opening of the river to legitimato trade would bring considerable advantages. Not the least might be the reduction of surplus population following return to Canton of some degree of prosperity, revival of business and romoval of serious cause. for friction due to accusation that the position of Hong Kong is being used for obstruction of trede. Since the charge has often bean mado in the past with far less justification I cannot but feel the advantages to be gained might well be bought by concession on the sole poins now at issue especially as 16 is admitted that the Japanese can but enforce this condition whether embodied in the
agreement or not.
The point at issue seams to be only interpretation
of the 1ecee word: "Eeasonable" in the agreement.
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