CO129-580-2 Sino-Japanese War- British policy and reactions in Hong Kong and Malaya 27-7-1939 - 3-2-1940 — Page 45

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Specie Bank jointly or (c) to a safe deposit under the joint

control of these banks.

2 a Silver to rumuin under seal until such time as

agreumens is reached between the British and Japanese

Goverments for a modification of arrangements.

3.

Silver to the value of £100,000 to be sold to

create a fund of relief,

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Relief moamires to be administered on the advice

of experts who would be appointed by British and Japanese

Decision as to what further sun is required

Governments.

over and above amount mentioned to be taken on the advico

of these experts.

5.

British authorities to co-operate with Japanese

authorities in Cellibuting sale of silver.

Vice-Minister states that blockade measures would

at once come to an end on signature of the agreement but

represented that agreement should be recorded separately.

Sir R. Craigie advocated that we should try to

reach agreement in view of struggle going on in Japan between advocates of a rapprochement respectively with the

Soviet Union and the democracies.

45

On 4th December Sir R. Craigie had a further

interview with the Vice-Minister for Foreign Affairs in which

they discussed the draft proposals. On the same day the Foreign Office instructed Sir R. Craigie that proposal 1 (b) above was not acceptable. Solution (a) was greatly to be

preferred, but if he was unable to secure this he was

authorised to settle on the basis of (c).

Sub-paragraphs

2 and 3 were acceptable subject to Chinese consent, but a

varning was given against being manoeuvred under 4 to the

surrender