CO129-585-5 Sino-Japanese conflict- shipping on Pearl River 3-1-1940 - 25-8-1940 — Page 127

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cory

(7 3059/26/10)

LIMITED DISTRIBUTION.

Decypher.

Mr.Hayter (Shanghai).

29th April, 1940.

D.

6.40 p.m.

R. 8.00 p.m.

80th April, 1940.

50th April, 1940.

No.374.

Following is repetition of Canton telegram No.52 of April 24th to me.

Addressed to British mbassy Ehan, hai telegram No.52 April 24th repeated to Chungking telegram No.11 Tokyo telegram No.15 Governor Hongkong telegram No.33 Commander-in-Chief telegram No.12 and to Commodore, and to Intelligence Centre Singapore.

My telegram No.41.

Japanese now demand agreement to the stationing of a (ɛrp. undec.) gen armerie in the compound of Butterfield and Swire's sharf. The reason given is to prevent emu, gling into unoccupied China. Until this proposal is overridden, unfair (grp.undec.) regarding permission for British ships to carry cargo will not be prevented.

£. T have protested orally to my Japanese colleague against th's attempt to extend Japanese control over British shipping under guise of a step towarda opening the river and have categorically refused to entertain the demand emphasising that the immunity of British property is a matter of principle which ie maintained against all parties. As my Japanese colleague does not appear content to accept my unconfirmed decision! shall be grateful if Your Excellency will confirm this.

3. A further measure taken by the Japanese to render useless the nominal "first step towards the re-opening of the Fearl River" is the establishment of a 11, hterage and stev dore monopoly. Butterfield and wire will not be allowed to tranship cargo into their own lighterage. In these circumstances they will not carry cargo, not even stores for chameen residents.

hameen residents. The result therefore of the "first step" is to make matters worse than before.