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Sir A. Clark Kerr (Shanghai)
2 C AUG 1940
16th August, 1940.
D.
W/T
RECEIV16th August, 1940.
22 AU
R.
10.40 p.m.
16th August, 1940.
copies and
sont
No.
(R. begins) Following is repetition of Canton telegram No. 92 to me:
(Begins) Addressed to His Majesty's Ambassador, Shanghai telegram No. 92 July 31st (Please repeat to Foreign Office) Repeated to Tokyo, telegram No. 29 Governor, Hong Kong, telegram No. 73 (please pass (gp. undec.) British representative as my telegram No. 21), Commander-in-Chief telegram No. 27.
Pilotage Regulations.
Tokyo printed letter despatch No.
241 of May 10th to Foreign Office.
Reply
As explained in my Printed Letter despatch No. 168 of July 17th and despatch No. 176 of July 26th, Japanese Consul- General under strong pressure of Japanese Navy on July 13th raised the question of the continued non-payment by S.S. atshan" of excess fees and demanded payment in full, was sent referring to Tokyo despatch under reference and forwarding cheque for the full amount of the fee under 1918 Canton Pilotage Regulations as representing "reasonable pilotage fees" provided for under Art. 5 (gp. undec.) of the agreement of July 4th 1939. Your telegram No. 928 merely expressed indignation at the offer and on July 29th the pilotage association with the support of the Navy informed Butterfield and Swire that unless pilotage fees were paid in full by July 31st, no further pilots (?gp. omtd: would be) provided for the "Fatshan". I endeavoured to persuade the Navy to provide for pilotage tomorrow to postpone the issue until the next sailing of the "Fatshan" on August 6th, to recommend to you and Butterfield and Swire. payment in full under protest to the Japanese Consul-General pending immediate bilateral consultation as to the meaning of "reasonable pilotage fees" which the Japanese Authorities had defined unilaterally in their regulation (gp. undec.) Navy refused any compromise: pay or no sailing. I understand Butterfield and Swire equally refuse all further payment both as unfair (which is true) and on principle. Portuguese vessels and Japanese merchant vessels in peaceful (sic) river already pay full fees. (R ends)
2. Consequently unless the Navy accept Article 5 at last moment tomorrow Fatshan will be detained here and agreement of July 4th 1939 will be broken by the Japanese and will be suspended presumably on both sides (gp. undec.) Hong Kong Government will prohibit Japanese sailings pending the provision of pilotage.
3. I suggest His Majesty's Ambassador at Tokyo protests strongly against this arbitary action and as regards the issue of instruction to pilots pending bilateral negotiations here as to scale of fees.
(Noted by Communications Department: Received very corrupt).
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