CO129-563-18 Sino-Japanese War- stopping of British shipping by Japanese 11-9-1937 - 29-12-1937 — Page 62

(COPY)

Number 161

British Consulate-Gene ral,

Shanghai.

(and three copies)

Copies to: Nanking, No.151,

Hongkong,

Commercial Counsellor, No.57, Financial Adviser, No. 33.

July 29th 1937.

63

sir,

I have the honour to report that, owing mainly to

the present Sino-Japanese tanaion, efforts are being

made by various local merchants to secure the protection

of the British flag for vessels not genuinely British-

owned.

2. The latest and most enlightening example has

been supplied by a Norwegian firm known as Wallem and

Company. On July 27th Mr. Sv. Froland, a representative

of the firm, called at the shipping office of this

Consulate-General and stated that he had been instructed

to secure British registry for two vessels which had

recently been acquired in the United States by a Chinese

company, and for which Wallem and Company had arranged

charters to Japanese interests. While admitting that

there was absolutely no British interest in the vessels,

Mr. Froland represented that, arrangements having been

made to transfer them to the nominal ownership of the

Hongkong branch of his firm, Vallen and Company, Limited,

a company incorporated under the Hongkong ordinances,

they were entitled to British registry and protection.

3.

Mr. Froland was informed that, even though

nominally owned by a British company, the vessels could

not be admitted to the British registry of shipping at

Shanghai until satisfactory evidence had been produced that there was a genuine and predominant British interest

/in

His Majesty's Ambassador,

British Embassy,

PEKING.