§ 5. Mr. Morganasked the Prime Minister whether he will endeavour to obtain from the British missionaries in the outlying parts of China reports as to 891 the extent to which narcotics are at the present time being imported from Japan and forced upon the Chinese people?
§ Mr. ButlerNo, Sir. Official action of this sort, which it would not be proper for His Majesty's Government to take, would place these persons in an embarrassing and difficult position.
§ 7. Mr. Banfieldasked the Prime Minister whether he can give any statistics of the arrests made in China by the police forces of the International Settlement and the French Concession, for the last year, of traders in narcotics; and whether he can state the nationality of such traders?
§ Mr. ButlerYes, Sir. During 1937, 255 persons were arrested by the police force of the International Settlement at Shanghai for being concerned in the sale of opium and narcotic drugs. Of these, 144 were Chinese, 97 Koreans, 13 Japanese and one Latvian. I have no information as to arrests by the police force of the French Concession.
§ Lieut.-Commander FletcherHas the hon. Gentleman called upon the consular authorities in China for a report on the sale of narcotics as mentioned in the question?
§ Mr. ButlerI think we have done so.
§ 11. Mr. Moreingasked the Prime Minister on what grounds the Japanese Government justify the opening of Japanese factories in the occupied areas inside and outside the International Settlement in Shanghai while prohibiting the working of foreign-owned factories on the ground of military necessity?
§ Mr. ButlerAlthough, so far as my Noble Friend is aware, the Japanese Government have made no official pronouncement on the subject, it is understood that they maintain that control can be exercised over Chinese workmen in Japanese factories, but they are not in all cases satisfied that control sufficient to prevent subversive activities can be exercised over Chinese workmen in foreign factories. The matter is still under discussion both at Shanghai and at Tokyo.
§ 16. Mr. Hannahasked the Prime Minister whether his attention has been drawn to the official announcement that the Japanese Government has presented basic 892 shares in the railways of North and Central China to Japanese charter companies to the value of 38,000,000 yen; and whether, as such shares would have priority over the British capital invested in these lines, he will protest against such action?
§ Mr. ButlerThe charter companies will not be formed until October and their prospectuses are still in draft. Draft articles of association, according to the Japanese Press, provide that the Japanese Government shall subscribe 175,000,000 yen, which is half of the total capitalisation of the North China Company, and 50,000,000 yen, which is half of the total capitalisation of the Central China Company, and that of these amounts 30,500,000 yen for the Central China Company shall, for example, be in the form of railway rolling stock.