CO129-575-3 Japanese affairs 2-1-1939 - 21-12-1939 — Page 150

THIS DOCUMENT IS THE PROPERTY OF HIS BRITANNIC MAJESTY's government

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FAR EASTERN (CHINA).

CONFIDENTIAL.

March 29. 1939.

SECTION 1.

[F 3116/534/10]

Copy No. 129

Sir R. Craigie to Viscount Halifax.—(Received March 29.)

(No. 128.) My Lord,

Tokyo, February 26, 1939. I HAVE the honour to transmit to your Lordship herewith copies of two despatches which I have received from His Majesty's Consul at Tamsui regarding Japanese activities in Fukien and South China as seen from Formosa.

2. Your Lordship will observe that in paragraph 5 of despatch No. 9 of the 9th February Mr. Archer suggests that, as a preliminary to an official visit to Tokyo in the latter part of this year, he should make a personal visit to Amoy and Canton (and Hong Kong), in order to gain some personal acquaintance with those areas in the development of which the Formosan authorities appear to be particularly interested. So far as I can at present foresee, it should not be impossible to relieve Mr. Archer for a sufficient period during the autumn to enable him to pay these visits. It appears to me that the value of such a trip. would well repay the expense entailed, and I therefore have the honour to request your Lordship's sanction for the proposal, should it be possible when the time comes, to make the necessary arrangements.

(No. 9. Sir,

I have, &c.

R. L. CRAIGIE.

Enclosure 1.

Consul Archer to Sir R. Craigie.

Confidential.)

Tamsui, February 9, 1939.

I HAVE the honour to enclose a report on Japanese activities in Fukien and South China, as seen from Formosa.

2. I fear the information given is somewhat meagre. This is due not only to the secrecy surrounding the subject, but also to the fact that the designs themselves would appear to be still in a very fluid state.

3. I think, however, that the desire of the authorities of this island that it should be used as a main base in the development of the mainland is proved by the almost continual absences of Mr. Kato, the Director of the Foreign Affairs Bureau, by the appointment of his deputy, Mr. Ozawa, to the Asiatic Planning Board ("Ko-a-in") in Tokyo and by the fact that it has been thought worth while to reserve all expenditure under this head for a special supplementary budget.

4. To what extent these local aspirations are likely to receive the necessary support in Tokyo appears to be in doubt. There has been sharp criticism at the Budget Committee of the Diet of the efficiency of the Formosa Development Company, and suggestions of its inadequacy as an instrument for South China development. I am unable to judge at this distance how far this criticism repre- sents the views of the Japanese Government; but at least the latter shows no signs of establishing a special new development company for the south; and in the absence of this it would appear that the lion's share in any Japanese development of Fukien and Kwangtung is likely to be left to the Formosan semi-official companies, and to special interests with roots in Formosa, such as the sugar companies.

5. In compiling reports of this nature I am greatly hampered by the fact that my only knowledge of events and conditions in South China comes to me through Japanese sources. To a large extent this defect would be remedied if I were supplied with print of any synoptic reports covering Fukien and Kwantung;

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