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F
*.co
4504
12 MAY 1939
88
NO DISTRIBUTION.
Decypher.
Mr. Broadmead (Shanghai).
10th May, 1939.
D. W/T.
12th May, 1939.
R. 1.30 p.m.
12th May, 1939.
No. 436.
*******
Your telegram No. 304.
As far as producing districts in Kiangsu province are concerned, immediate question at issue is not so much one of exercise of a monopoly by new Japanese company (which it is hardly yet in a position to enforce) as of interference by
Hav Japanese military with purchase of cocoons by other Japanese interests, and with their transfer from junks to river vessels
Question of military at mouths of creeks in Yangtse delta.
interference with all trade and shipping in Yangtse estuary is at present under investigation and subject of consultation with British naval authorities and reply to your telegram under reference was held up pending a decision as to what action it is possible or desirable to take in the matter (position in this connexion is more fully explained in despatch from His Majesty's Consul General Shanghai to Embassy No. 208 of May 6th copies to Tokyo).
Buying season for cocoons is now about to begin and it
Some Chinese
is uncertain how far Japanese will obstruct. merchants have obtained from Japanese "permits to purchase in Kiangsu", and it is understood that they will either have
to ship by Japanese boats or by ships of other nationals having "permits to load".
Messrs. Jardine Matheson and Co.,
are /
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