1938-09-02 — Page 18

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The China "Ninety-Third Year of Publication SA Wyndham Street, Hong Kong. Telephone 20022

London Office:

Japaneshi were trying to create the impression that the time had come for the splitting of China at the Yangtse with Japan in control of the North and Britain in control of the South. In this were extensive nego-

7, Garrick Street, London, W.C.2. com the Japanese alleged

Notice To Contributors.

that

All communications intended for tiations in progress at Hankow |publication_should be addressed to on the question of British loans the Editor, and be accompanied by to China, the report concluding the Writer's Name and Address, with the statement that in the not necessarily for insertion but as event, that Chinese negotiations for a British loan failed, then a guarantee of good f

faith.

General Chiang Kai-shek likely to leave his fate entirely to Russia, and that the Chinese government would be reorganised on Soviet lines."

Subscription Rates.

3 Months

6 Months

One Year

H.K.$ 9.00 H.K.$18.00

HK$36.00

Postage Abroad Extra Hong Kong, Friday, September 2,

was.

In addition to these reports in- 1938-dicating a serious attempt

BRITISH POLICY IN THE FAR EAST

.

on

es-

In

the part of the Japanese to tablish friendly co-operative re- lations with, Great Britain, there was further report in the "Hochi A primary and fundamental Shimbun," stating that the Jap- element which must always be anese were planning an extensive borne in mind in any considera-readjustment of their diplomacy tion of British policy is the pro- "after Hankow falls." It was tection of British investments. expected that the fall of Hankow British bondholders are so well “would settle the fighting situa- organised that they bring im- tion for a time," thus providing mediate pressure to bear on the an opportunity to Japan to read- government in the event of a just her diplomatic relations, crisis developing anywhere that primarily with Great Britain but is likely to adversely affect Brit-also with the United States, ish investments. Often the mat France and Soviet Russia. ter of protecting the interests of other words, the Japanese ap- bondholders is emphasised to the parently had convinced them- detriment of traders. The state selves that their expected occu- ment has been made that the pation of Hankow would open up present Government in England the prospect of favourable deals would not mind who controlled with other countries, particularly China so long as the coupons on Great Britain, whose interests British bonds were honoured were larger than those of any This statement, which is based other power. on a complete misconception of

Whether there was any con- the Anglo- where Britain's main interests

nection between lie, probably originated in the de- velopments immediately follow Japanese conversations in Tokyo ing the Mukden Incident on Sep and the declaration of Sir John Simon that the British govern- tember 18, 1931, when the reprehent could not approve of direct sentatives of British bondholders oans to China is not known.

The immediate flare-up in in the Peiping-Mukden Railway succeeded in inducing the Jap- Hankow following Sir John anese to assume responsibility for paying interest on the British Simon's announcement indicated loan to the railway-following there was no chance of China's which Sir John Simon promptly acceptance of mediation. All lost interest in what happened to leading Chinese papers published Manchuria, or even British com-editorials expressing deep resent- ment at Sir John Simon's state- mercial interests in that import-ment. That Sir John Simon, the ant territory.

:

"villain" of the Manchurian According to a recent discus-negotiations, should again ap- sion in the House of Commons, pear even accidentally, in the British capital in China, includ- role of an opponent of Chinese ing investments by residents and aspirations was unfortunate be- institutions domiciled in the chuse all Chinese remember the Manchurian United Kingdom was estimated tense days of the

..

at £130,000,000 which is equiva- negotiations when Sir John Simon lent to nearly four billion in refused to co-operate with Col. Chinese money at the present Henry Stimson, U. S. Secretary abnormal rate of exchange. The of State in bringing pressure on nominal value of securities of Japan. The "Wuhan Daily News," companies which have invest-official Kuomintang organ, called ments in China, which are listed attention to the fact that Britain on the London Stock Exchange had subscribed to the League re- amount to about £41,000,000. But solution pledging assistance

this does not include a consider-China, and disclosed that on

able amount of unquoted and intention was to use the loan for private investments which bring the purchase of air defence equip the total to the larger figurement. The Wuhan paper also.. to. These figures are obviously printed a pointed reference significant in any consideration Britain's interests in China being of British policy or British reac- greater than those of any other tions in connection with develop-foreign country and that these ments at Hankow. It is equally interests were certain to be jeo. obvious that the Japanese are pardised if China were conquered, fully aware of the emphasis that by Japan. It is not surprising, the British government places therefore, to revert to the con- between General upon the protection of the inter-versations

Ugaki and Sir Robert. Crálzie, ests of bondholders.

to the The "Nichi-Nichi," comment- that it should appea ing on the Ugaki-Craigie conver (Chinese mind that Bi sations said that the "exch

of assurances was consi comparable to the Hirota-

aking an with the Jap

THE OFFICE APPLIANCE CO. exchange of messages and was flor to the occupation of Hai

Powell's Bldg.

LIMITED

Tel. 28607

regarded as a favourable factor how by the Japanese armý în regulating Anglo-Japanese re- plain declaration that lations if the Japanese army would never consider a would respect the rights and in- deal with Japan At Chi terests of Britons in China.” pense was timely, though:

It was quite plain that the should not have been necellary: