FO371-23517 — Page 187

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E

MAG 4455

IN.

CONFIDENTIAL.

FROM:- R.A. Yangtse.

IT MAY 1939

by ry

Administrative Code (E).

DATE: 9/5/39. RECD:- 2309.

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

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

546.

Yangtse weekly situation report No. 8,

Below barrier. Delta is patrolled by Japanese

A.M. Ships numbers 31, 32, 33 and 34.

motor fishing boats in attendance.

The trada

Each have one or more

They move positions daily

and all Junks have to go alongside and be searched. is controlled by Japanese Army ashore and at the two northern ports of Hsinkong and Hsinenkong every obstacle is put in the way of British trade by refusal to issue permits to Junks and Lighters to proceed alongside unless there is cargo left after Japanese and German ships have loaded. Japanese are also

forbidding certain imports calculated to assist Chinese.

British posters are displayed ashore.

Anti-

Trade at Haimen continues

under Japanese occupation at present. South Bank ports are

closed except to Japanese and German ships but there is little trade at this season. At Kiangyin just above barrier wharfs are

being erected and there is large increase of Japanese trade.

Nanking. No change.

Wuhu. Japanese garrison increased and Chinese attack

Japanese cannot trade on northern bank owing to

expected. guerillas they have therefore stopped Chinese trading.

Kiukiang. Japanese Authorities continue to be cordial.

All foreign property visited with representatives of firms.

Anti-British and American Japanese expect Chinese air raids.

propaganda has started and boycott urged.

Peace Maintenance

Committee levying taxation on all goods including Japanese.

3,000 troops left up river. Firing heard in direction of Kuling

Japanese force of 3,000 failed in attempted capture

Mountains.

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