Enclours in Canton Ph. Despolil No 41.

C.O.

Minute of Consul-General's In erview with Mr.

nita at the latter's house, 10th May, 1940.

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838/34/60

41

Present:- Mensr #tark Toller, Kita, Hayasaki,

Price and Yoshioka.

2. REG

The Consul-Gene al prefaced his remarks by

With the Compliments stating that this first step towards the reopening of

- of the

Under Secretary of State for Foreign Affairs

- 1 JUN 1940

Copy sent to

C

my of shipping

the Pearl River was a great disappointment to himself

and to Bitish interests.

There were three point ☐ in

particular to which he objected.

1. The Ja anese claim to station guards on the

"Patshan" hile she was in Canton. A British ship was

British soil and he had received the Ambassador's con-

firmation that this could not be tolerated.

2. The request contained in paragraph 7 of the

Supplementary Lemsandum, which in the light of the

"Patshan's" visit of April 23rd - 26th miŋounted to com-

pulsion, that ears. Butterfield & wire should belong

to the Canton Stevedore & Godown Association. This fira

were not even allowed to move cargo from their own ship

into their own godowns.

3. The list of restricted articles, totalling

over sixty, and representing some 80, of the port's

normal trade. Buch restrictions on articles of no

military importance like cotton yarn and sugar could

only create ost unfortunate impression and lead to

misunderstanding and discrimination. It was hoped that

the bulk of these restrictions would soon be removed

as they were a great deterrent to the resumption of

trade.

r. Kita replied:-

1. He was taking this matter up with the Japanese military authorities and hoped that a satisfactory settlement would shortly be reached.

8. (Here Mr. Hayazaki interposed that there must

surely be some misunderstanding, since it was not the

intention of the Japanese to create a monoply, to forge

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