CO129-563-17 Sino-Japanese War- attacks on shipping. For extracted photographs see CN 3-12 27-9-1937 - 17-1-1938 — Page 42

}

- 2 -

Lamps D

ཅི་ཊ་

.P

Japanese landing in British territory of armed Japanese

was contrary to the provisions of the local municipal

law (vide attached copy of Notification No.75 in the

Hong Kong Government Gazette of the 5th of February

1937, the contents of which were communicated to the

Japanese Consul-General last February). The alleged

stealing of the chickens of villagers in British

territory would constitute a criminal act of banditry

unjustifiable by any law: I see no reason to disbelieve

the story and I consider that the owners should receive full compensation.

3.

It has been suggested that the use of these

waters by vessels belonging to the Chinese Maritime Customs Service is a course of action of a provocative nature in view of the present hostilities in neighbouring waters. Undoubtedly, as the episode under discussion shows, it is liable to lead to the occurrence of an international "incident". On the other hand in my view it would be an unfriendly act to deprive Chinese Customs vessels at this juncture of the privilege which they have always enjoyed of free passage through the waters of the Colony. Moreover, I do not hold that the right to prohibit their passage lies with me. As you are aware the Convention between Great Britain and China which was signed at Peking on June 9th, 1898, specifically declared that "The area leased to Great Britain,

includes the waters of Mirs Bay and Deep Bay, but it is agreed that Chinese vessels of war, whether neutral or otherwise, shall retain the right to use those waters". Apart from other present considerations affecting neutrality locally these

Chinese Customs cruisers, despite their name, are not