§ 9. Sir John Wardlaw-Milneasked the Prime Minister whether he has now received the report from His Majesty's Ambassador in Tokyo as to the result of the personal examination by the new Japanese Minister for Foreign Affairs of the matters raised in the protests made by His Majesty's Government on 31st December, 1937, and 5th, 6th, and 11th April, 1938, in connection with cases of assault by Japanese against British subjects in the International Settlement at Shanghai?
§ Mr. ButlerNo, Sir. The Japanese Government so far have made no advance towards a settlement in these cases. His Majesty's Ambassador at Tokyo is, however, continuing to press them in the matter.
§ Sir J. Wardlaw-MilneWill the Government press this matter constantly during the Recess, and try to get some decision?
§ Mr. ButlerThe Government attach very special importance to an early settlement of these cases.
§ 10. Mr. Chorltonasked the Prime Minister whether his attention has been called to the declared intention of the Japanese authorities in Shanghai to place Chinese industrial establishments under temporary Japanese control; and what steps he is taking to secure that no British-owned factories are affected by this decision?
§ Mr. ButlerYes, Sir. Reports have reached me that the Japanese authorities propose to take over all the existing Chinese-owned mills in the areas under their control. His Majesty's Ambassador at Tokyo has brought to the notice of the Japanese authorities that in many of these mills there is a substantial British interest. So far as I am aware, there has been no question of attempting to control factories which are wholly British-owned.
§ 11. Mr. Chorltonasked the Prime Minister whether he has received the expected report from His Majesty's Consul-General in Tientsin on the subject of interference by Japanese military authorities with British commercial cables at Tientsin; and what steps he is taking in the matter?
§ Mr. ButlerMy Noble Friend has received a report from His Majesty's Consul-General at Tientsin to the effect that frequent representations have been made to the Director of the Japanese telegraph office there regarding delays and mutilations in telegrams received. A certain improvement in the quality of the messages received has been noted, but the service is still erratic.
§ Mr. ChorltonHave the representations been continued?
§ Mr. ButlerYes, Sir.
§ 15 Mr. Moreingasked the Prime Minister (1) whether he is yet in a position to report the result of the discussions with the Japanese authorities in Shanghai and Tokyo as to the reopening of foreign-owned factories in the occupied areas inside and outside the international settlement in Shanghai;
§ (2) whether he has yet received a satisfactory reply from the Japanese Government to the representations of His Majesty's Government that an opportunity should be afforded to the representatives of the British bondholders of the Shanghai-Nanking Railway to inspect the railway line and that the necessary measures should be taken to safeguard their financial interests in the line;
§ (3) whether he has yet received a satisfactory reply to the representations made both in Shanghai and Tokyo that the restrictions which prevent Chinese workmen employed in British factories from travelling in tramcars to their work should be removed?
§ Mr. ButlerThese matters will form, among others, the subject of a conversation between His Majesty's Ambassador at Tokyo and the Japanese Minister for Foreign Affairs, which has been arranged to be held during the course of the next day or two. Meanwhile my Noble Friend would stress the importance which he attaches to an early settlement of these questions.
§ Mr. Noel-BakerWill the Minister urge upon his Noble Friend that he should point out to the Japanese Government that they are violating almost every known rule of international law?
§ Mr. ButlerI have no doubt that every relevant subject will come up for consideration.
§ 23. Mr. Chorltonasked the Prime Minister what information he has now obtained about the Japanese wool monopoly in North China and, in particular, if the Provisional Government in Peiping set up by the Japanese military authorities has now put a general embargo on the export of wool and hides; and what measures he is taking to protect British interests in respect of this trade?
§ Mr. ButlerI have received a report from His Majesty's Consul-General at Tientsin, from which it appears that all wool stocks up-country have been registered by the Japanese and that a permit is required before these stocks can be removed, but there has as yet been no specific instance of a refusal to permit the export of wool. The export of hides and skins from Tientsin was temporarily prohibited as from 1st July. Representations were made to the Japanese Government by His Majesty's Ambassador in Tokyo, and I now understand that the embargo is being lifted except as regards certain skins of special quality which are stated to be required by the Japanese Army.
§ Sir J. Wardlaw-MilneIs my hon. Friend aware that a prohibition, in fact, exists because the Japanese prevent any railway freight being made available for British firms and thus put the wool into the hands of Japanese firms which hitherto had nothing to do with that trade?
§ Mr. ButlerI will certainly investigate the point my hon. Friend has brought to my attention.
§ Mr. R. GibsonIs wool imported into this country from China, and to what extent?
§ Mr. ButlerI should want notice of that question.
§ 24. Commander Marsdenasked the Prime Minister what is the present position with regard to the freedom of transit for British merchant shipping on the inland waterways of China; and what has been the result of the protests of His Majesty's Government to the Japanese Government with regard to the discrimination that is being practised against British shipping?
§ 34. Sir John Haslamasked the Prime Minister whether he can now state the result of the negotiations between the 2689 consular body in Shanghai and the Japanese authorities for the resumption of dredging by the Whangpo Conservancy Board?
§ Mr. ButlerThese matters are among those to be reviewed in the course of a conversation between His Majesty's Ambassador at Tokyo and the Japanese Minister for Foreign Affairs within the next few days. I can, therefore, make no further statement at present.
§ Commander MarsdenWill my hon. Friend bear in mind that a great extent of this great area of inland water transport is very remote from the scene of the fighting and has nothing to do with it?
§ Mr. ButlerYes, Sir.
§ Mr. George GriffithsIs it the fact that the Government cannot expect any better answer from the Japanese than they do from Franco at any time?
§ Mr. ButlerI must remind the hon. Gentleman that he cannot expect good answers from everybody. I am aware of the importance of the inland waterways.
§ 26. Mr. Hannahasked the Prime Minister whether he has yet received a report from His Majesty's Ambassador in Tokyo on the extent to which British interests would be affected by the proposed reorganisation of the Pekin-Mukden Railway and other railway systems in North China by the Japanese; and what steps he is taking in the matter?
§ Mr. ButlerAs I informed the hon. Member for Kidderminster (Sir J. Wardlaw-Milne) on 27th June, His Majesty's Ambassador at Tokyo has been in communication with the Japanese Government on this subject. A reply has now been received asserting that the reorganisation was carried out in order to secure maximum efficiency, in view of the damage done to the line and of the flight of many of the railway employés. The Note goes on to declare that there is no intention of infringing British rights and interests by this reorganisation. This reply is now being considered by His Majesty's Government.
§ 27. Mr. Hannahasked the Prime Minister whether he has received any reply to his representations to the Japanese Government with regard to the embarrassment suffered by British trade 2690 in North China arising from the imposition of an inconvertible paper currency by the Japanese-controlled federated reserve bank with the consequent freezing of all credit facilities?
§ Mr. ButlerNo formal reply was requested in the representations made, but His Majesty's Government are relying on the Japanese Government to refrain from measures which would have the effect of freezing credit facilities.