CO129-579-3 Sino-Japanese War- shipping 30-10-1938 - 23-12-1939 — Page 23

SECRET.

MESSAGE.

From C. in C. China.

IN.

DATE 11/8/39. 23

EXC'D. BEC D. 2125.

INTERDEPARTMENTAL CYPHER. CORRECTION RECD.1725/13.

Addressed: Admiralty, repeated Ambassador Shanghai, 704,

Commodore Hong Kong 458, Ambassador Tokyo, 523, N. L.0. Consul General Shanghai.

782.

N.L.O.'s 1053 July 26th. I have replied in

writing to Admiral Oikawa's letter and copies have been sent

Shanghai and Tokyo. I have again pressed

to Admiralty.

for release of SAGRES as I consider we have a good case.

This does not apply to the cases of LALITA and DHOLERA and I

have left paragraph (c) of above signal unanswered.

I entirely agree with Ambassador Tokyo's remarks

contained in his 448 to Foreign Office and activities of

firms such as the owners of LALITA and DHOLERA are nothing

but an embarrassment to British Authorities. On the other

hand, although more respectable British firms do not charter

to Chinese, it might alienate Chinese goodwill on which what

little trade is at present available depends if we were to

intimate to Shipping Companies generally that they must not

charter to Chinese Government or Chinese firms.

To answer to paragraph (d) in either the

affirmative or negative would be to establish a principle

which might have far-reaching results, and the argument that

these two are British Ships and therefore illegally seized,

though correct in theory is doubtful from realistic point

of view/