FO371-31667 — Page 82

Page 82

Page 82

2c

MEMORANDUM BY THE BOARD OF DIRECTORS OF

THE CHINESE ENGINEERING AND LINING COPANY, LILIZED,

1ST JUNE 1942.

The Kailan Mining Administration is a partnership

consisting of the British "Chinese Engineering and Mining

Company Limited" and a Chinese Company known as the "Lanchow

Mining Company Limited" of Tientsin.

The Administration employs some 50,000 Chinese of all

grades and is controlled by two Chief Managers, one British

and one Chinese, representing respectively the two owning

Companies.

There was a British Staff of about 80 persons, of whom

23 have joined the Forces, and the Board estimate that the present enquiry from the Chief Managers refers to the activities

of about 55 individuals.

The Board accept unreservedly the general principio laid

down by His Majesty's Covernment as stated in the instructions

sent to . . Minister at Berne (quoted in Foreign Office letter to the Chinese Engineering and Mining Company of 13th May) and they fully recognise that the interests of the Company must be

subordinated to the prosecution of the war.

is

The governing consideration in their minds is that the mining and output of coal will continue, whether the British employees continued to function or declined to do so. expressly stated in the telegram from the Swiss Chargé d'Affaires at Shanghai "bien que la production puisse être continué sans

leur presence".

It is difficult to see that any pronounced detriment would be suffered by the Japanese from the refusal of the British

At the outbreak of war employees to continue their services.

the Japanese already had some thirteen observers and advisers scattered through the various branches of the Administration, and

Page 82

Page 82

Page 82