Mr. Gent. 11.12.
Mr. Calder 11.12.
Sir C. Parkinson 12.12. at once.
CYPHER TELEGRAM from the Secretary of State for the
37
Colonies to the Governors of the Straits Settlements and
Hong Kong
Sent 4.0 p.m. 12th December, 1939.
44
Personal. Secret.
Addreas Governor Straits Settlements.
Governor Hong Kong.
Following is summary of recent developments in
regard to Tientsin situation.for your information.
On 21st November Sir Robert Craigie was instructed
to point out that .hile His Majesty's Goverment would
welcome settlement of outstanding issues at Tientsin they
could not proceed while British interests in North China
continued to be subjected to pressure. As regards silver
question solution must be one which Chin.se Governmunt
could be induced to accept, while police questions must either
be part of a general settlement or, if the Japanesc agreed,
of a separate police agreement. Importance was stressed of
taking no action which would antagonise American opinion.
On 25th November Sir Robert Craigie suggested as &
basis for settlement of the silver question that it should be
sealed in a neutral bank and that say £100,000 should be used
for urgent flood relief purposes under expertt committee
comprising British, Japanese, Chinese and possibly French
representatives. He was authorised on 28th November to
approach the Japanese Government on that basis, and on 2nd
December he discussed the matter with the Japanese Vice-
Minister for Foreign Affairs, as a result of which it was
agreed that he should draft an arrangement on the lines that:-
Silver should be transferred to either (a) a neutral
bank or (b) to the Hong Kong and Shanghai Bank and Yokohama
Copy to F.0. secrét L.F. Further action at A. in my minute of 11.12.
G.E.J.G.
Specie
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