CO129-585-5 Sino-Japanese conflict- shipping on Pearl River 3-1-1940 - 25-8-1940 — Page 97

COPY

Dear Sirs,

C.N.CO.LTD.

HONG KONG,

22nd April, 1940.

97

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. Acceptance of the Japanese proposals as they stand would bad as the Blunt/Okazaki agreement is be a fatal blunder, since the effect would be:

-

madala

1. to give them an excellent political advertisement, in

return for which they are in reality offering us nothing.

2. to perpetuate what was intended to be a temporary

arrangement (and a very objectionable one at that), pending the restoration of normal conditions, thereby indefinitely postponing the real issue.

3. to submit to the confinement of British tonnage to the

river trade, while giving the Japanese free scope in the coast trade,

thus in actual fact strengthening their own position and correspondingly weakening ours, all in a very pleasant odour of sanctity.

Until, therefore, the Japanese Authorities are prepared to enter into bilateral discussion with our authorities, we

Messrs. Butterfield & Swire,

CANTON.

/do