OUTWARD TELEGRAM
[This Document is the Property of His Britannic Majesty's Government, and should be
kept under Lock and Key.]
(F.2510/78/10.)
[Cypher.]
DEPARTMENTAL NO. 2.
FROM FOREIGN OFFICE TO SHANGHAI.
No. 389.
10th April, 1941.
Du
3.10 p.m., 10th April, 1941.
Repeated to Hong Kong No. 295.
Canton No. 9.
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18
IMPORTANT.
Shanghai telegram No. 35 to Canton [of March 31st Hong Kong-Canton shipping].
I am rather disturbed that in this matter of the Hong Kong-Canton shipping traffic we are being led away from the principle hitherto laid down that while private individuals and firms may make what arrangements they consider best in their own interests His Majesty's Government will not negotiate any agreement with the Japanese authorities infringing either our treaty rights or the sovereignty of China. Article 2 of the Nine Power Treaty has still to be considered in this respect. I am aware that we have been forced to compromise in certain instances, but it is advisable to maintain the principle to the best of our ability.
2. As regards the Blunt-Okasaki arrangement, it was stipulated at the time that it was informal, temporary and without prejudice to our treaty rights. On the same under- standing therefore I concur in the acceptance of the Japanese proposal for a 30% reduction in the pilotage tariff but with- out further commitment. It should however be made clear that His Majesty's Consul-General cannot be involved in any further negotiations about port control, the handling of cargo by a lighterage and stevedore monopoly and so on. An official agreement of that nature would prejudice the position at other ports and notably at Shanghai. What arrangements private firms are willing to accept is their own affair.
3. Since the British community at Canton will not be seriously affected by a suspension of sailings and in the light of Sir A. Clark Kerr's telegram No. 250 [of 22nd March] it would seem that we are in a good position to make a stand if the Japanese try to enforce further objectionable conditions.
Please repeat Saving to Tokyo.