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Msa

سليم

5705 176

DEPARTMENTAL NO. 2.

Sir R. Craigie (Tokyo)

Decode.

D. R.

No. 2542 (R).

IMMEDIATE.

11.10 p.m. 2.45 a.m.

26th December, 1940.

ССССССС

Your telegram No. 1401.

10.

122

26th December, 1940. 27th December, 1940.

#25705/176/10

Vice President of Yokohama Specie Bank has given following explanation to Commercial Counsellor and to agent of Hong Kong and Shanghai Bank.

1. Specie Bank and other Japanese banks, at present buy sterling export bills from merchants, who export from Japan to sterling area. Sterling thus acquired is more than sufficient to cover exports from sterling area to Japan, since there [sic? they] are at present restricted. Surplus sterling moreover, is subject to British exchange Control. For these reasons, Yokohama Specie Bank and other Japanese banks confine their sterling purchases to export bills and do not buy sterling from other banks. All Japanese banks at present trying to avoid increasing their holding of sterling (please see in this connexion my telegram No. 451) Vice President said that there was no agreement among Japanese banks to refuse to buy sterling from British banks.

2. Japanese official figures of trade with sterling area for first half of 1940 which have just been obtained (but not for publication) from Commercial Bureau of Ministry of Foreign Affairs by Commercial Counsellor, showed an export balance of 121⁄2 million yen in favour of Japan, (please see in this connexion Hong Kong telegram No 143 to you).

76/10

5679/196

3. In the circumstances, there does not appear to be discrimination against British banks.

4. Vice President said that he hoped Anglo-Japanese Payments Agreement could soon be arranged.

Repeated to Shanghai telegram No. 395 Saving.

[Copies sent to Mr. Waley]..

Copy

ser & Mr

Young (My),

1. B. Bromb

27/10.1

|A=27/1

DEC

R

XI

1940

REGISTE

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