CO129-579-7 Sino-Japanese War- shipping on Pearl River 4-1-1939 - 9-6-1939 — Page 88

CO129 Colonial Office Hong Kong Records 理藩院香港檔案 All

From: CHINA.

Telegram (en clair) from Mr. Blunt, (Canton).

D. February 19th, 1939.

R.

No. 3. SAVING.

March 3rd, 1939.

31.88

Addressed to His Majesty's Ambassador, Shanghai, No. 2 of 18/2/39.

The predictions contained in the last

paragraph of my telegram No.261 of 1938 after over

three months of Japanese occupation, have been

generally fulfilled, except inasmuch as a fairly

reasonable postal service has been set up through the

mechanism of the old Chinese Post Office but under

Japanese supervision.

2.

There have been some agreeable suprises.

Merchants have been able to dispose without restrictions

of existing stocks as fas as purchasers could be found;

there has been no arbitrary interference with movements

of gunboats or with supplies for local foreigners who

have been treated with courtesy. On the other hand

business hardly exists and there is no signs of progress

about the future wither as regards shipping, customs or

trade. Staffs are being reduced drastically, leaving

only 'caretakers' in the hope of later improvement in

the situation.

Meanwhile there are Japanese shops in

the city well stocked with all manner of Japanese produce.

brought to Canton in Government chartered vessels or

'transports' and supplies, mostly of foodstuffs,

kerosene and piece goods, 'surplus to military

requirements' will continue to arrive for sale.

3.

My impression is that matters will improve,

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