§ 2. Mr. Arthur Henderson
asked the Prime Minister whether, in view of the recent incident in Shanghai between American and Japanese troops, he can now make a statement on the negotiations taking place between the municipal council and the Japanese authorities following the receipt of the Japanese demand for a larger share in the control of the International Settlement?
§ The Under-Secretary of State for Foreign Affairs (Mr. Butler)
The Municipal Council have replied to the Japanese demands in terms approved by the Consular Body. The reply is, I understand, acceptable to the Japanese authorities and a summary has been issued to the Press by the Council. I have not yet received the full text, but I am informed that the Council have indicated their willingness to meet the Japanese requests in regard to the police force, as far as they can be met without impairment of efficiency, in return for an assurance that simultaneous steps will be taken for the restoration to the Council of full control in that part of the settlement which lies to the north of the Soochow Creek.
§ Mr. Henderson
Has any request been made during these negotiations that the Japanese authorities should take steps to prevent the sort of incident referred to in the question?
§ Mr. Butler
I could not give details of the negotiations, but the hon. Gentleman may take it, in view of the satisfactory nature of the conclusions, that all these subjects were taken into consideration.