CO129-580-6 New Territories 6-1-1939 - 16-8-1939 — Page 58

danger that any settlement effected with

the present Chinese Government might

subsequently be repudiated by a Chinese

Puppet Government controlled by Japan.

It seems, moreover, rather significant

that the Chinese, though desperately in

need of cash, have not themselves put

of this nature. forward any such suggestion Unless,

therefore, there are any recent

developments in our Far Eastern policy,

We Are

of which mignorant, which would make

it possible for a settlement of this

question to be included in some general

policy for more active assistance to China,

be

I confess that can see little advantage

and, indeed, considerable danger in raising

the question ourselves at the present time.

more

There seems little that we can

do in this matter until we have the Board

of Trade report. We hope to get this

fairly soon, and, when we do receive it,

we expect to be in a position to send you

an official despatch on this subject.