CO129-585-5 Sino-Japanese conflict- shipping on Pearl River 3-1-1940 - 25-8-1940 — Page 130

'COPY

BUTTERFIELD & SWIRE,

Messrs. John Swire & Sons, Ltd.,

LONDON.

HONG KONG.

23rd April, 1940.

1330

Dear Sirs,

C.N.CO.

Canton Trade.

You have probably seen references

in the press to the alleged opening of the Pearl River on 20th

April by the Japanese military, and we enclose copy of the announce-

ment made by their Consulate-General in Canton from which you will

see that the proposals, if we were prepared to play, would really

leave us rather worse off than we are at present.

As a result, apparently, of their uncertainty as to

our reactions, the Japanese have not so far given the matter the

degree of publicity that might have been expected since the move

is obviously a political one for American benefit, but should they

attempt to make more capital out of it, it may be advisable to prick the balloon, and a question in the House might be effective when the Foreign and Colonial Offices have been properly primed.

We think our authorities here can be kept on the right lines for the time being, and in this connection we enclose a copy of our letter to Canton of 22nd April. The dangers of trying to compromise on the issue are obvious.

Yours faithfully,

BUTTERFIELD & SWIRE.

Page 130Page 131