NOTHING
ΤΟ
BE
WRITTEN
IN
THIS
MARGIN.
Registry
No. F 2510/78/10
20
FOREIGN OFFICE, S.W.1.
April, 1941.
Draft.
Mr. Broadmead,
Shanghai.
Shanghai telegram No. 35 to Canton
of 31st March - 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 understanding
therefore I am prepared to accept the Japanese
proposal for a 30% reduction in the pilotage
tariff without further commitment. But it should
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
otably at Shanghai. What arrangements private
firms/
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firms are willing to accept is their own affair.
3.
On the above basis I concur in the
resumption of Japanese sailings in the previous
ratio of at least one British ship to two
Japanese. Otherwise I think we had better
suspend sailings and await the next Japanese
move. Since the British community at Canton
will not be seriously affected and in the light
of Sir Archibald Clark Kerr's telegram No. 250
[of 22nd March it would seem that we are in a
good position to make a stand.