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2.
other obstructionist tactics outside the quarter. I imagine however that validity of protocol is more likely to be disputed through diplomatic channels assisted by usual press propaganda. It is at the same time difficult to believe Japanese would take such a step except as a last resort or unless encouraged by political developments in Europe though they are undoubtedly desperate at sheltered position of foreign banks vis-à-vis new note issue and irritated at check over their activities inside the quarter afforded by authority of administrative commission supported by presence of foreign embassy guards.
5. Should the issue arise it may be worth keeping in mind Japanese quotation of protocol in connexion with original incident of July 1957 quoted in appendix to Nanking Embassy despatch to Foreign Office No. 65 and Provisional Government's undertaking regarding assumption of all foreign obligations referred to in paragraph 4 of Peking despatch to Foreign Office
No. 165 of 1938.
F7264/29/12/10
Repeated to Foreign Office No.58 and saving to Tientsin
and Tokyo.
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