CO129-579-7 Sino-Japanese War- shipping on Pearl River 4-1-1939 - 9-6-1939 — Page 83

2.

3. A.

It is specifically an ad hoc arrangement for certain

vessels.

abolition.

B. I do not share Hongkong shipping companies' fear of an

If Japanese wish to establish a quota in the future,

on my experience to date, they will not worry about reasons or

precedents but will insist: take it or leave it. On the other

hand we have our undoubted treaty rights. Until however we can and

will defend these I submit we do well to accept any temporary

arrangement which benefits British shipping.

4. If it is decided to repudiate the phrase objected to I

propose to inform my Japanese colleague in writing accordingly but I

consider probable results will be to call attention to quotas, to

create suspicion and ill-will, and that Japanese will agree to the

calling of passenger ships less often and less regularly. Hongkong could (and would, I hope) retaliate by corresponding

refusal of agreement. But if so ill-feeling will increase.

present existing goodwill seems to be bearing fruit.

To which

At

Repeated to Governor Hongkong No. 72, Commander-in-Chief No.51

and Foreign Foreign Office No.23.

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