HC Deb 04 May 1938 vol 335 cc845-50
3. Sir John Wardlaw-Milne

asked the Prime Minister whether his attention has been drawn to the complaint made by British residents in the International Settlement in Shanghai of 12th April that incidents involving violence by Japanese military authorities to the persons and property of foreigners are a frequent occurrence, ranging in gravity from a pistol threat, under the eyes of Japanese sentries, to the commandant of the Durham Light Infantry to physical assaults on civilians; and what steps have been taken to protect the lives and property of British subjects in the area of the settlement occupied by Japanese troops?

Mr. Butler

My attention has been drawn to this complaint. His Majesty's Ambassador at Tokyo has made energetic representations to the Japanese Government with whom he has instructions to take up all these matters urgently.

Sir J. Wardlaw-Milne

Is my hon. Friend not aware that conditions in the International Settlement are entirely different from conditions in the rest of China; and is it not possible for the British Government, in consultation with the American Government, to insist on action being taken to protect the integrity of the International Settlement?

Mr. R. Acland

Is the hon. Member aware that that could not be done without a war?

Mr. Butler

Representations on the subject have been made by our Ambus-sador at Tokyo.

Sir J. Wardlaw-Milne

Is the hon. Member aware that no question of war arises in the case of the International Settlement, which is not on foreign territory?

7. Mr. Moreing

asked the Prime Minister whether his attention has been drawn to the obstacles placed by the Japanese authorities in the way of Chinese workers desiring to return to work in British factories in the Shanghai International Settlement, particularly with regard to the refusal to allow the necessary service of tramways; and what steps is he taking to remedy this state of affairs?

Mr. Butler

Yes, Sir. His Majesty's representatives both in Shanghai and Tokyo have done their utmost to bring about an improvement in the situation.

8. Mr. Moreing

asked the Prime Minister whether he will instruct His Majesty's Ambassador in Tokyo to request the Japanese Government to refrain from preventing the British-owned Shanghai tramways from sending their tramcars for necessary repairs to the company's repair shops in Yangtsepoo, in the International Settlement?

Mr. Butler

The Shanghai Electric Construction Company, Limited, obtained permission through the efforts of His Majesty's Consul-General at Shanghai on 28th March to send trams for overhaul in Yangtsepoo and they have been sending them regularly to repair shops there since 31st March.

9. Mr. Moreing

asked the Prime Minister whether his attention has been drawn to the attempts of the Japanese Government to impose Japanese currency upon the Shanghai International Settlement, particularly with regard to the refusal to allow the tramcars to work in certain districts unless the fares are collected in Japanese yen; and whether he will instruct His Majesty's Ambassador to protest against this interference with the established currency in the International Settlement?

Mr. Butler

I have received no information from Shanghai in this sense. Perhaps my hon. Friend will be good enough to communicate with me in the matter.

14. Mr. Hannah

asked the Prime Minister what steps have been taken to put a stop to the extensive smuggling of Japanese goods into the Hongkew and Yangtsepoo districts of the International Settlement of Shanghai, to the prejudice of the trade of other nations?

Mr. Butler

The Japanese Government have repeatedly been urged to put a stop to this abuse, and it is hoped that more effective action will be taken as a result of the arrangements recently reached regarding Customs matters in the areas occupied by the Japanese forces.

Mr. George Griffiths

Cannot we bring this matter to the notice of the Non-Intervention Committee?

Sir John Haslam

May I ask the hon. Gentleman to recognise that some of us are very keen on this Chino-Japanese question, although Members in certain parts of this House do not seem to be troubled at all?

Mr. Butler

I appreciate that fact.

15. Commander Marsden

asked the Prime Minister whether he will call a conference of the Powers enjoying treaty rights in the International Settlement of Shanghai with a view to issuing a joint demand to the Japanese Government to withdraw from the area of the International Settlement all Japanese naval and military forces, save such as may be reasonably required in accordance with treaty rights for the protection of the lives and property of Japanese nationals in the area of the Settlement?

Mr. Butler

I fear that my hon. and gallant Friend's suggestion presents many difficulties and would not be likely to lead to any practical results.

16. Commander Marsden

asked the Prime Minister why the Chinese Customs service is allowed to operate normally in the French Concession at Shanghai and not in the International Settlement?

Mr. Butler

The reason is that the French Concession is solely under French control and the armed forces of other nations are not permitted to exercise authority therein.

Commander Marsden

Is my hon. Friend fully aware that, owing to the Japanese control of Customs, a lot of Japanese goods are going into the Settlement free of duty to the detriment of our trade; and will he not adopt a more determined attitude?

Mr. Butler

I will consider the point which my hon. and gallant Friend has put to me.

17. Major-General Sir Alfred Knox

asked the Prime Minister whether he has any information as to the quantity of munitions imported into China since the outbreak of war and from what countries these munitions chiefly came?

Mr. Butler

As regards munitions imported into China from other countries, I have nothing to add to the reply given to my hon. and gallant Friend on 7th February. So far, however, as imports from the United Kingdom are concerned, the total value of the arms, ammunition and military and naval stores exported from this country to China was £204,908 during the period 1st June, 1937, to 31st March, 1938, the latest date up to which figures are available.

Sir A. Knox

Is it not true that 80 per cent. of these munitions are supplied by Germany and Italy and that the bill is backed by Soviet Russia?

Mr. James Griffiths

Can the hon. Gentleman say how it comes about that the Foreign Office have such specific information about arms going to China and such vague information about arms going to Spain?

27. Mr. Noel-Baker

asked the Prime Minister whether he can make a statement concerning the negotiations of His Majesty's Government with the Government of Japan regarding the Chinese Customs service?

The Prime Minister

His Majesty's Ambassador in Tokyo has, since February last, been carrying on unofficial conversations with the Japanese Vice-Minister for Foreign Affairs, regarding the servicing of the foreign obligations secured on the revenues of the Chinese Maritime Customs and other matters connected therewith. His Majesty's Government in the United Kingdom have now received from the Japanese Government a communication stating what temporary measures they propose to take during the period of hostilities to regulate these matters. His Majesty's Government will offer no objection to the application of these measures for the period mentioned. They appear to His Majesty's Government to offer the best guarantee obtainable for safeguarding the interests of the holders of China's foreign obligations secured on the Customs revenues and thereby to assist in maintaining China's credit. I am circulating further details in the OFFICIAL RERORT.

Mr. Noel-Baker

May we take it that this agreement does not in any way recognise the legitimacy of the action Japan has taken in respect of the Chinese Customs service?

The Prime Minister

Yes, Sir.

Mr. Thorne

Does that mean that you are depriving the Chinese Government of a good deal of the revenue by the attitude you are adopting?

The Prime Minister

No, Sir.

Following are the details:

According to the arrangements notified to His Majesty's Government by the Japanese Government which will be subject to reconsideration in the event of a radical change occurring in the economic conditions, all revenues collected by the Customs at each port within the areas under Japanese occupation are to be deposited with the Yokohama Specie Bank. From revenues thus deposited foreign loan quotas will be remitted to the Inspector-General of Customs in order to meet in full the servicing of the foreign loans and indemnities secured on the Customs revenue. The servicing of such foreign loans and indemnities will be treated as a first charge on the revenue after deducting the maintenance expenses of the Customs Administration and certain Customs payments and grants. Foreign loan quotas for each port will be determined monthly in proportion to the share of that port in the total gross collections for all ports during the preceding month.

Arrangements will also be made for payment to the Japanese Government of arrears on the Japanese portion of the Boxer indemnity held at the Hongkong and Shanghai Bank since last September, for meeting future payments in respect of the Japanese portion of the Boxer indemnity and the Japanese share of the re-organisation loan of 1913, for the repayment of the overdraft incurred by the Inspector-General of Customs since January in relation to the Shanghai share of the foreign loan service, which has been accumulating in Hongkong and Shanghai Bank at Shanghai, and for transfer to the Yokohama Specie Bank of the balance of Customs accounts with the Hongkong and Shanghai Bank in each port under Japanese occupation and its utilisation for the future servicing of foreign obligations.