CO129-562-23 Koshu Koshi Kabushiki Kaisha- suspected activity as Japanese agents 2-4-1937 - 25-8-1937 — Page 16

16

and one representative each of the directorates of

the Mitsui Bussan Kaisha, the Industrial Bank of

Japan and the Sumitomo Goshi Kaisha.

4.

These arrangements are understood to have been

made after discussions with the Economic Section of the

Kwantung Army, the Ministries of War and of Foreign

Affairs and the Manchurian Affairs Bureau (of which the

head is the Minister for War) of the Cabinet. The

Tokyo Office of the South Manchuria Railway has informed

the Acting Commercial Counsellor of this Embassy that

the establishment of branch offices of the China

Development Company in such places as Shanghai and

Hong Kong (or Canton) has not yet been definitely

decided; but the establishment of a branch in Canton

would not be surprising, in view of the numerous recent

indications of Japanese economic penetration in South

China.

I have, etc.,

(Sgd) R. H. Clive.