5
24. F.O.
ESTROYED UNDER STATUTE
25. N.K
F1979/78/10
Tel. 256
28-3-41
30.3.47
Copy & (as made ) [7" Ah Scott (F.0).
by hand.
Recesena.
266 To FO W/ Copy 25) Comps)
27. 70
:STROYED UNDER STATUTE
See hot at
17.
1/445
a
2414/28/10
2.
4.44
30.3.4.1
You may like, to see the present position.
The British and Japanese Consuls at Canton arranged for the suspension by mutual consent of the Blunt - Okazaki Agreement as from the 31st March, and that sailings on both sides should be suspended without prejudice up to that date.
The Japanese subsequently said that while they would agree to suspension, they thought it would aggravate local feeling, and the two Consuls agreed to put up the following solution as an alternative.
(a)
The Japanese to give an assurance that there would be no interference with the "Fatshan" or any other British vessel sailing under the Agreement in connection with the supply of pilots or the payment of pilotage fees.
(b)
The Japanese authorities to agree to a reduction of at least 30 per cent in the pilotage rates they demand.
(c) The British authorities to agree that this new scale would only come into force if and when a supplementary cargo agreement was concluded.
(a) Thereupon the new scale of fees to be retrospective as from the 1st August, 1940.
The Japanese authorities have now stated their agreement to (b) and (d) above, and have further said they would be ready to allow the new scale to come into force at once, and that it need not be linked to the cargo agreement which would be discussed separately.
Mr. Blunt has been surprised by the advance shown in these terms, but strongly recommends their acceptance, and on the whole Sir Geoffry Northcote is also in favour of accepting, although the whole question is to be discussed with Sir A. Clark Kerr during his visit to Hong Kong in the present week. In the meantime the "Fatshan" and the Japanese military transport are resuming their sailings to Canton.
It looks as though this matter may, therefore, be patched up again locally, but there may be
difficulties