CO129-579-7 Sino-Japanese War- shipping on Pearl River 4-1-1939 - 9-6-1939 — Page 14

that "the original proposal was an extra-legal

compromise, and it is therefore illogical to be too meticulous in arguing about procedure now", and

stating that neither he nor the Japanese had ever

supposed that these Japanese Government chartered

vessels, which the Japanese regard as being under

Naval Regulations, would be treated as normal

merchant vessels.

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A meeting was then held in Hong Kong (see

enc. 4 to 36) attended by the Governor, the

Colonial Secretary, Mr. Blunt, the Attorney-General,

the Harbour Master and the Naval Authorities, when

it was decided to accept the Japanese proposals as

contained in enc. 1 to 36, subject to one modification.

As a result these Japanese government chartered

vessels now enjoy special treatment in Hong Kong.

On his return to Hong Kong Mr. Blunt agreed on the terms of a memorandum with the Japanese Consul-General embodying a summary of the present sent Pearl arrangements regarding shipping on the river.

The effect of this memorandum (enc. 5 to 36) is

that, without prejudice to any legal or Treaty rights one Japanese vessel is to sail in each direction

per week, and one British vessel each fortnight.

The conditions attaching to the Japanese sailings are as agreed upon with Hong Kong; those relating

to British sailings are principally that these vessels should carry passengers only, and no goods

or merchandise except for British residents at

Shameen.

The arrangement is thus one-sided, but in

the circumstances seems to be the best that can be

expected.

Although a gentlemans' agreement on a basis of reciprocity would obviously have been preferable, Mr. Blunt reports that the present arrangement running smoothly, and the general opinion of all

is

>

concerned