CO129-565-1 Indo-China Steam Navigation Company- acquisition of Chinese merchant steamers 30-9-1937 - 6-4-1938 — Page 16

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Decode and Decypher.

Sir R. Craigie (Tokyo). 24th March, 1933.

D. R.

8.25 p.m. 2.50 p.m.

24th March, 1958.

25th March, 1938.

No. 372,

16

(R) BEGINS.

Vice Minister for Foreign Affairs drew my attention on 22nd March to report from Japanese Consul-General, Hongkong that (1) China Merchant Steam Navigation Company were negotiat- ing transfer of four ships (two of which were now at Hongkong) to Indo-China Steam Navigation Company, subsidiary of Jardine, Mathieson and Company and (2) China Merchant Steamship Haiyuan hitherto anchored at Hongkong and used temporarily to store munitions had been transferred to Wheelock and Company, British Shipping Agents, Shanghai and was preparing to carry large cargo of T.N.T to a Chinese port.

I said I thought I had heard of the first transaction but

not the second.

order.

Transfer for ordinary legitimate trade was perfectly in

His Excellency insisted however that similar transfers for running blockade were bound to lead to difficulties.

(R) ENDS.

I presume first transaction is that referred to in Colonial Office telegram No. 241 of 1937 to Hongkong and Foreign Office telegram No. 107 to Mr. Howe. If so I suggest I should now be

As regards the authorised to inform Japanese of it informally.

second transaction I should be glad of instructions.

Addressed to Foreign Office, Telegram No. 372 of 24th March, repeated to Embassy Shanghai and Hongkong.