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F56561176/18
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DEPARTMENTAL No. 2.
The Governor (Hong Kong)
21st December, 1940.
23rd December, 1940.
24th December, 1940.
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Tokyo telegram 2489 to Foreign Office.
Following for Treasury from Financial Commissioner.
I suggest we should take note of this communication and register formal protest. Similar American
representations have also been rejected and concerted Anglo-American action in Tokyo seems therefore desirable.
2. Hitherto Japanese have disclaimed any direct connexion with new bank and have pretended that it was the sole creation of Nanking Government, but now they announce full official support. This new development will preclude Japanese from disclaiming unmistakable responsibility for policy which new bank may pursue.
3. In making our protest I suggest we stress impediments to foreign trade rather than effects on FAPI. These may well be serious as bank will operate in financial nerve centre of China. Chinese in their public utterances will probably treat new bank as of little significance from point of view of currency stabilization, in order to mask very real apprehensions they have on this account. For this reason it seems undesirable for us to stress this aspect too strongly as Japanese may draw unfortunate conclusions about deterioration of the internal currency situation in China about which they do not at present seem fully informed.
Repeated to Chungking telegram No. 197, Shanghai telegram No. 281 Tokyo telegram No. 143 Washington.
[Copies sent to Mr. Waley].
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