49. Mr. David Adamsasked the Chancellor of the Exchequer whether he is aware that any maintenance or stabilisation of the yen above its economic level is calculated to have the effect of facilitating the import of warlike supplies by Japan; and whether he will assure the House that no guarantee, direct or indirect, has been, or will be, given by any Department of His Majesty's Government which might have the effect of thus maintaining the Japanese currency?
§ Lieut.-Colonel ColvilleNo guarantee of the kind referred to has been asked for or is contemplated.
§ 55. Mr. Morgan Jonesasked the Prime Minister whether he has any statement to make with regard to the situation in China?
§ 56. Mr. Palingasked the Prime Minister whether he has any information to give the House as to the position of affairs in the Far East?
§ The Prime MinisterThe only major military operations which have taken place recently have been in South Shantung, but their significance is still in doubt. In many other districts guerilla warfare is in progress, and the Japanese lines of communications are being harassed by the Chinese even in the neighbourhood of Peking and Shanghai. A special congress of the Kuomintang was held at Hankow on 29th March and succeeding days, as a result of which General Chiang Kai-shek was given a vote of confidence and his policy of continuing resistance was approved. The situation as regards access to property at Shanghai and difficulties in the way of navigation on the Yangtze by British vessels have been made the subject of representations to the Japanese authorities.
§ Mr. Morgan JonesMay we assume that the statement made by a Japanese statesman on returning to Japan recently that England was in sympathy with Japan was in no wise expressing the opinion of His Majesty's Government.
§ The Prime MinisterI have not seen such a statement.