FO371-23514 — Page 18

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strict investigation disciplinary action would be taken against those who committed this serious mistake and that appropriate measures would be devised to prevent the

recurrence of incidents of this kind. The Japanese

Government also indicated its intention to arrange through

direct negotiations between the British and Japanese

authorities on the spot for payment of compensation for

damages and for other matters.

On instructions from My Noble Friend Sir Robert Craigie

has informed the Japanese Government that His Majesty's

Government regard the incident as having been settled on

these terms.

Repeated to Shanghai No 158.

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