OUTWARD TELEGRAM
[This Document is the Property of His Britannic Majesty's Government, and should be
kept under Lock and Key.]
54
(F 1387/78/10
DEPARTMENTAL NO.2.
Cypher telegram to Mr. Blunt (Canton)
Foreign Office,
No. 4.
7th March, 1941.
2.45 p.m.
ᏤᏤᏤᏤᏤᏤᏤᏤ
IMPORTANT.
2.
Canton telegram No.2 [of January 26th:
Pearl River].
Re-opening of
Mr. Warren Swire urges that in view of Japanese refusal to agree to reasonable pilotage tariff and virtual closure of Canton to British shipping both from Hong Kong and China coast ports the Hong Kong Government should retaliate by closing their ports to all Japanese tonnage.
2. While not yet prepared to support this proposal I shall be glad to have your view, after consulting the Governor of Hong Kong, as to whether the suspension of the Blunt-Okasaki agreement and the stoppage of the Japanese naval transport traffic between Hong Kong and Canton would be effective in forcing the Japanese to a reasonable settlement of the pilotage question and a more accommodating attitude towards the shipping trade between the two ports.
3. If so, would it not be better first to warn the Japanese informally of our intention and make another effort to reach a settlement without such action?
4. Mr. Swire states that his Company will not run their ship at a loss any longer. How will this effect the British community in Canton and is it likely that other shipping interests would fill the gap if the agreement were not suspended but the Fatshan ceased to run?
5. Since the foregoing was drafted we have received from Messrs. Swire copy of telegram from Messrs. Butterfield and Swire at Hong Kong stating that you have been "instructed to notify suspension of agreement end of March". the position?
Repeated to Hong Kong 189, and Shanghai 241.
What is