FO371-24687 — Page 29

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of this difficult question on a reasonable basis instead of on "radical" lines favoured by Japanese extremists, and I hope that the present inability of His Majesty's Government to provide further sterling backing for Fapi will not in itself be held to debar frank discussion with Japanese and Chinese alike of possible methods of avoiding a collapse.

5. Pending the receipt of your reply I do not propose to discuss the matter with my United States colleague and my French colleague.

Repeated to Shanghai telegram No. 399 Hongkong for Rogers telegram No. 140.

This is an excellent idea and if the obvious difficulties could be overcome considerable good night result. The reactions of the Chinese auths. in Chungking towards problematica formal discussions in Shanghon are at least

well take them

they were represented. But if lur. Rogers, have very great confidence, were

of

in whom the Chivers the representatives at

the discussions the Chinese might be satisfied.

harm could come from Sir R. Craigies In any case

мо

couraging the Vice In F.A. to continue to think along these lines.

Qy copy to Tylasury,

d Washington.

Cr. Whitamor

14/6,

Sir J. Brexan.

Le minute.

Suchet.

17/6

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