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Government House,

Hong Kong.

March 8th, 1939.

257

My dear Cowell,

I hope that the Powers That Be approve of the

settlement which we made with the Japanese Military

Authorities for the Shum Chun bombing. Locally, I know,

the Chinese tend to think that we let the Japanese down

too easily, and I have heard somewhat similar views

expressed by Europeans.

The principle on which we acted

was to exact the just amount without anything for moral

damage or in the way of punishment. That seemed to me

the only dignified course: I am sure that if we had asked

for one hundred thousand dollars the Japanese would have

paid without demur, so anxious were they to settle the matter

on our terms: but I did not think it consistent with

British prestige to open ourselves to an accusation of

'tizzy-snatching' in a matter such as this:

moreover,

I

felt convinced that a strictly moderate demand for compensa-

tion would impress the Japanese more, and in the better

way, than would have one for heavy damages.

I think that the official despatch explains

everything else and gives sufficient information about

what transpired during the Japanese visit of apology.

With many kind regards,

(Sgd.) G.A.S. Northcote.

H.R. Cowell,Esq.,C.M.G.,

Colonial Office,

London, S.W.1.

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