No.

ENCLOSURE/IN CANTON DI ATCH NO. 103 of 29/4/1940 to B.. Shanghai

W.Stark Toller, Esquire, 0.3.E.,

H.B.V. Consul-General,

CANTUN

31r,

80

Ümnton, 84th wril, 1940

In connection with the Ja:ANEBO Ľamora nium of 18th

April, regarding carriage of certain non-restricteʻi goo la

between Canton and Hongkong and vice versa, copy of which

you kindly forwarded to us, we have now heard from our Jongkong

principals.

They are not at mll in favour of carriage under the

conditione given and in fact consider it would be a fatal blunder

to accept the Javanese pronosals as they stand since the efïnat

would be

1).

g).

3).

To give thera (the Japanese) an excellent molitio al advertisement, in return for which they are in reality offering us nothing.

To perpetuate what was intended to be a tera, orary arrangement (and one we do not like at that) pond- ing the restoration of normal conditions, thereby indefinitely postpaing the real issue.

to

To subit/the confinement of British tonnage to the River trade, while giving the Ja anese rull scope in the Const trade.

thus in satual fact strengthening their own position and

gorras ondingly weakening ours, all in a very pleasant odour of

sanctity.

Hongkong say that until, therefore, the Japanesa

authorities are prepared to enter into bilateral discussion

with you,

do not "opone to avail ourselves of their our-

mission" to carry cargo in "Patahan”, not indeed to make any

alteration in present proceffure. y enlise thin my perhape

be a little galling to British merchant interest at your port,

but the question is one that does not admit of compromise for

restrictions agreed to now are only too likely to become permanent

They draw particular attention to the necessity for

bearing in mind that mily weakness dimṣlayed here may have damng-

ing repercussions on the ultimate settlement of the Yangtsze

question and they also stress the importance of the autho~i tiem

in ihanghai being kept alomely posted of develo:«m^rtm,

which we would e owend to your earnest nonsi^»mati on .

ra

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