HC Deb 21 November 1938 vol 341 cc1323-4
18. Mr. Hannah

asked the Prime Minister whether his attention has been drawn to the attempt being made by the Japanese to create a Japanese monopoly of the trade in raw cotton in the area round Shanghai; and what action he has taken in the matter?

Mr. Butler

My Noble Friend has seen reports in the Press to this effect. He is calling for a report, and my hon. Friend may rest assured that this matter will be closely followed.

Mr. Hannah

Is not the condition of our trade in China very serious?

Mr. Butler

We are fully alive to the seriousness of the position.

22. Mr. Moreing

asked the Prime Minister 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 re-opening of foreign-owned factories in the occupied areas inside and outside the International Settlement in Shanghai?

Mr. Butler

The discussions are continuing. My Noble Friend understands that certain of the cases are in a fair way to being settled locally.

23. Mr. Moreing

asked the Prime Minister 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?

Mr. Butler

In his conversations with the Japanese Minister for Foreign Affairs last September, His Majesty's Ambassador at Tokyo was informed that there were difficulties of a military character in the way of a comprehensive grant of inspection facilities on this and other Chinese railways: an inspection of the Shanghai North Railway Station had, however, been permitted. Both the question of inspection and that of the financial interests of the bondholders are being considered by the Japanese Government, and a definite reply has been promised.

1. Mr. Chorlton

asked the Prime Minister whether he has considered the representations from British trading interests in Shanghai urging strong and immediate action to protect British trade in China from Japanese encroachment; and what steps he has taken in the matter?

Mr. Butler

My Noble Friend has given close attention to these representations. His Majesty's Ambassador at Tokyo has recently re-emphasised to the Japanese Government the importance which is attached in this country to the early settlement of all outstanding cases affecting British interests in China.

2. Mr. Chorlton

asked the Prime Minister whether his attention has been drawn to the Japanese official account of the inaugural meetings of the two Japanese syndicates which have been formed to control industries, commodities, and communications in North and Central China; by whom the capital of these syndicates is being subscribed; whether in cash or kind; and what steps he has taken to prevent British trade being excluded from the China market?

Mr. Butler

I understand that the two companies in question were formally established on 7th November. En each case, one half of the capital is to be furnished by the Japanese Government and one half by private investors, part of the Government's investment being represented by contributions in kind. His Majesty's Ambassador has been assured that no exclusive rights or monopolistic privileges are claimed for these enterprises. With regard to the last part of the question, representations have frequently been made, and will continue to be made, to the Japanese Government whenever British interests are adversely affected.