FO371-23518 — Page 65

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3.

vacancy in question should be filled by a British subject, provided, of course, that no other nationality had a superior claim on the same lines. This proposal was accepted by the Inspector-General of Cuatoms (subject to certain reservations regarding the admission

of Chinese pilots, with which we are not at present

concerned) and received the concurrence of the Chinese

Government. (Shanghai to Peking No. 218 of 29/5/35).

Unfortunately, a year later, and following a difference

of opinion with his colleagues regarding the appointment

of Chinese pilots, the Japanese Consul-General, on

behalf of his Government, reserved the right to abandon

the quota system, and to negotiate separately with the

Chinese Government for an increase in the number of

Japanese pilots (Shanghai to Peking No. 236 of 26/6/36).

6.

hen, therefore, the Japanese advanced their

claim to the appointment of Japanese nationals to the

vacancies under discussion, they contended that, although

in 1935, the Japanese Consul-General had been particularly

insistent on the introduction of the five year period,

they were no longer bound by the quota system. They

also supported their claim by arguing that, since the

commencement of hostilities, they had paid pilotage

fees for their warships and transports, although they

might easily have conscripted the five Japanese pilots

in the Association, thus causing the latter serious

financial loss. Finally, they pointed out that,

although there were only five Japanese pilots, the

Japanese/

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