FO371-23517 — Page 168

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Enla

IN.

F 2891

58

DATE- 22/3/39 24 MAR 1939

CONFIDENTIAL.

MESSAGE.

FROM- R. A.Yangtse.

RECD.

2030,

ADMINISTRATIVE CODE (E)

ADDRESSED - C-in-C. China repeated Admiralty, N.L.0.Shanghai,

S.0.(I) Changhai, S.N.0.Shanghai, Yangtse Gunboats.

459.

Weekly Yalgtse situation report number one/1959. Delic

trade. Japanese garrisons at the ports on the Northern shore

have been reinforced and endeavour is being made to start

Japanese trade and enforce various trade rules.

|Governm

Chinese

? export channels.

Gove:mment forces are stopping cargoes reaching these fort canalc

Guerillas in baie district are now properly organised and let

and getting their orders from National Government,

Anticipation

of fighting is causing large exodus of population to Shanghai,

A small amount of Japanese trade at Kuan both export and impori

Japanese boarded Jardine Matheson's Hulk and inspected wireless

and log a short time ago. On the south bank all trade has

stopped various restrictions imposed by Japanese and reformsó

Government with the result that junks are not allowed up the

creeks. Passenger traffic however continues.

Wuhu, little hope is seen of extending trade above the Kiangyin

Barrier, Situation quiet. Foreigners can move freely with

passes and many have their wives back with them. It is

impossible to get into military area on water front at Nanking

to visit Butterfield and Swire's and Jardine Matheson's

property. Every endeavour is being made to visit Admiralty

Nanking and

Naval Canteen but excuses are made to prevent this.

will be continued.

Pressure

Japanese trade continues to grow in volume

but a good deal of British goods are selling in Wuhu arriving

in Japanese ships and forwarded to Chinese agents.

Propaganda; as a result of British loan to China intenge

anti-British propaganda has been started by Japanese controlled

reformed Government calling on employees to leave British FirmS.

Kiukiang......

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