159A
Japan's present method of meeting her local expenditure
in military yen).
His Excellency added that it was proposed to apply
the same measures mutatis mutandis to the Pearl River.
Vice Minister for Foreign Affairs added in answer to
my enquiry that the above arrangements were intended to be
purely transitory and were quite independent of the emergence
of the new Central Government for China. It was obvious that
in the early stages special precautions would be necessary in
order to convince the army that the Lower Yangtze could be
re-opened to trade without serious loss to nitary efficiency;
but once trade had started moving and the present apprehensions
had been shown to be unfounded, restrictions would be
progressively reduced.
I thanked the Vice Minister for Foreign Affairs for this
communication, which I felt sure you would receive with great
interest. It would of course be unfortunate if this
constructive measure were to be hedged about with so many
restrictions as to impair its utility, but I felt sure that
you would be ready to consider that the safeguards, which the
Japanese authorities might consider to be necessary, as
transitory measures.
Mr. Tani will shortly let the Japanese Government have
detailed proposals.
Addressed to Foreign Office. Repeated to Shanghai
telegram No. 246.