CO129-585-5 Sino-Japanese conflict- shipping on Pearl River 3-1-1940 - 25-8-1940 — Page 133

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Messrs. Butterfield & Swire,

CANTON.

HONG KONG 22nd April, 1940.

133

Dear Sirs,

C.N.CO.LTD.

Opening of Pearl River.

We are much obliged for your

letters of 13th and 17th April, and for your comments on the terms and conditions under which the Japanese Authorities propose to

"open" the Pearl River.

Jardines and ourselves have since had the opportunity of

discussing these proposals with the Colonial Secretary and your Consul-General, and although we do not feel too happy about the latter's attitude, we understand that in his reply to the Japanese

Consul-General he will maintain that the Blunt/Okazaki agreement

remains in force until the full re-opening of the river, and cannot be modified unilaterally; protest against the restrictions now imposed, and reserve all rights; and press for the full opening

of the river. That is on the right lines, and the Hong Kong

Government will reply similarly if approached.

W

Acceptance of

bad as the Blunt/

the Japanese proposals as they stand would

Okazaki agreement is be a fatal blunder, since the effect would

be:

1.

2.

3.

to give them an excellent political advertisement, in return for which they are in reality offering us nothing.

to perpetuate what was intended to be a temporary arrange- ment (and a very objectionable one at that), pending the restoration of normal conditions, thereby indefinitely postponing the real issue.

to submit to the confinement of British tonnage to the river trade, while giving the Japanese free scope in the coast trade,