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No.125(2/150/39)

Copy to Dairen No.8

191

F 311 British Embase},

Tokyo.

29 MAR 1939

24th February, 1939.

My Lord,

I have the honour to transmit herewith copy of

a despatch addressed to me by His Majesty's Consul in Dairen

on the subject of the impact of recent developments in China

upon the position of the Kwantung Leased Territory. No

projected Ordinance such as that mentioned in paragraph 2

of Mr. Foulds' despatch has as yet come to my knowledge.

2. The question of the status of the Leased Territory

has been discussed from time to time in the Japanese press

and was raised in the Budget Committee of the House of

Representatives on the 31st January. On that occasion, a

Mr. Koyama suggested that the continued existence of the

Leased Territory was contrary to the spirit of the "new

order" and that, apart from this, Manchukuo was being

deprived of Customs and other revenues which were properly

due to her. The Minister for Foreign Affairs replied to

this question to the effect that the status of the Kwantung

Leased Territory constituted an important, but very complex

problem. The question was being carefully studied by the

Government, but no conlusions had yet been reached.

The Right Honourable

The Viscount Halifax, K.G., G.C.S.I., G.C.I.E.

etc.,

etc.,

etc.,

I have the honour to be

With the highest respect,

My Lord,

Your Lordship's most obedient

humble Servant,

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