CO129-580-2 Sino-Japanese War- British policy and reactions in Hong Kong and Malaya 27-7-1939 - 3-2-1940 — Page 35

35

(3)

anxiety lest presentation of drafts to Japanese

might prejudice situation as regards currency

and in some degree also the silver question.

Japanese had been understood to be not indisposed

tacitly to refrain from pressing the currency

issue, but if this was not possible it was

preferable that they should withdraw their

demand for the prohibition of fapi in return for

an undertaking not to obstruct the circulation

of Federal Reserve Bank currency.

On 16th December Sir R. Craigie telegraphed

(Tokyo telegram No. 1642] his view on the

currency question and suggested that His Majesty's

Consul-General at Tientsin should re-draft the

second paragraph of the draft text. The

Foreign Office concurred in this suggestion

[Foreign Office telegram to Tokyo No. 866 of

December 19th) and stated that while they were

not unwilling that efforts should be made,

within the administrative framework of the

concession, to prevent abuses, they were not

ΤΟ

BE

WRITTEN IN THIS

MARGIN.

NOTHING

prepared