§ 1. Sir John Wardlaw-Milneasked the Prime Minister whether he has yet received a satisfactory reply from the Japanese Government to the protest of His Majesty's Government at the occupation by the Japanese at Shanghai of the British-owned Moller engineering works?
§ The Under-Secretary of State for Foreign Affairs (Mr. Butler)No, Sir, but my Noble Friend is expecting a report on this matter shortly.
§ Sir J. Wardlaw-MilneWill my hon. Friend do his best to press for an early reply? This is a very important matter and there are several other cases in which British interests have been affected?
§ Mr. ButlerI fully appreciate the importance which my hon. Friend attaches to this case, and I can assure him that we are pressing it very hard.
§ Sir Percy HarrisCan the hon. Gentleman explain what legal right the Japanese have to take possession of British property, especially in Shanghai which is an International Settlement?
§ Mr. ButlerThere are particular considerations applying to these works, which lie in an area of alleged strategic importance.
§ 7. Mr. Dayasked the Prime Minister whether he can make a statement as to the manner in which the autonomy and tariff treaties signed by His Majesty's Government and the Nationalist Government of China are at present working?
§ Mr. ButlerSo far as His Majesty's Government are concerned, they continue to adhere to the principle of tariff autonomy for China as laid down in the Tariff Autonomy Treaty of 1928. In the areas under Japanese military occupation, however, the Chinese Government are prevented, by force majeure, from the application of this principle. The Chinese Government continue to apply the 1934 tariff duties in the area under their control, but in the Japanese-controlled areas the 1931 rates of duty, with certain amendments, have been applied.
§ Mr. ButlerAll that I can say on the subject is included in my answer.
§ 8. Mr. Watkinsasked the Prime Minister the number of doctors and others comprised in the English-speaking medical unit in China; whether he has received a report on its work; and whether he has any statement to make?
§ Mr. ButlerI understand that the English-speaking unit comprises two British subjects, Dr. Robertson, the leader of the unit, and Dr. Hawes; an Austrian, Dr. Pollitzer, and a number of Chinese doctors and assistants. So far, no official report has been circulated by the Secretary-General to the States Members of the League, and in the absence of such a report I am unable to make any statement.
§ Mr. WatkinsDoes this medical unit operate exclusively for civilians, or does it operate in the war zone as well?
§ Mr. ButlerI will make inquiries but I think that it operates in the war zone as well.
§ 10. Sir J. Wardlaw-Milneasked the Prime Minister whether his attention has 2169 been drawn to the official pronouncement of Prince Konoye, Prime Minister of Japan, that Great Britain is apparently sceptical of Japanese good intentions with regard to British interests in China; and whether he will instruct His Majesty's Ambassador in Japan to inform the Japanese Prime Minister personally that British opinion might be considerably modified were we to receive satisfactory replies to the representations we have made on various matters of protest?
§ The Prime Minister (Mr. Chamberlain)Yes, Sir, and I have no doubt that His Majesty's Ambassador at Tokyo has frequently made this point in the discussions which he has had with the Japanese Minister for Foreign Affairs. As regards my hon. Friend's suggestion that the Ambassador should speak personally in this sense to the Japanese Prime Minister, my Noble Friend cannot doubt that Prince Konoye must already be aware of the position from the reports which are supplied to him by the Foreign Minister.
§ 11. Sir J. Wardlaw-Milneasked the Prime Minister whether he is aware that the British shipping companies concerned with the trade on the Yangtze have repeatedly asked that the resumption of their sailings should be made possible, either by the institution of a convoy system or by other forms of protection by the British Navy; and what action is being taken to meet their requirements?
§ Mr. ButlerMy Noble Friend understands the position to be that the firms concerned would be glad of a convoy if it could at any time take ships through the Kiangyin boom. As regards the last part of the question, I would refer to the answer given to my hon. Friend the Member for Bury (Mr. Chorlton) on 18th July.
§ Sir J. Wardlaw-MilneCan my hon. Friend tell the House whether the naval authorities are in touch with British interests?
§ Mr. ButlerYes, Sir, I understand that they are.
§ 12. Mr. Arthur Hendersonasked the Prime Minister whether he has now any further statement to make on the possibility of mediation in the Sino-Japanese war, with a view to securing an early termination of hostilities?
§ The Prime MinisterSince my hon. Friend replied to a question on this subject by my hon. and gallant Friend, the Member for Hertford (Sir M. Sueter) on 27th June, the Japanese Prime Minister in an interview with representatives of the Press on 6th July has again stated that there is no possibility of peace through mediation by a third Power.
§ Mr. HendersonMay I take it that, provided that both sides were willing. His Majesty's Government would be prepared to act as mediator?
§ The Prime MinisterWe must wait until both sides are willing.