CO129-585-5 Sino-Japanese conflict- shipping on Pearl River 3-1-1940 - 25-8-1940 — Page 92

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BUTTERFIELD & SWIRE,

Dear Sirs,

C.N.CO.

92

HONG KONG.

23rd April, 1940.

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 announcement 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.

Messrs. John Swire & Sons, Ltd.,

LONDON.

Yours faithfully,

BUTTERFIELD & SWIRE.