HC Deb 19 June 1940 vol 362 cc140-2
3. Sir John Wardlaw-Milne

asked the Under-Secretary of State for Foreign Affairs what were the terms of the settlement negotiated between the British and Japanese Governments regarding Tientsin?

Mr. Butler

I am happy to state that His Majesty's Government and the Japanese Government have signed in Tokyo to-day an Agreement on certain local questions relating to the British Concession at Tientsin. These questions include police arrangements for the suppression of terrorist acts and the more effective maintenance of law and order, the circulation of currency in the Concession, and the disposal and custody of the silver reserves in a Chinese bank in the Concession. The arrangement covering this latter point has received the assent of the Chinese Government. In order not to occupy the time of the House with a long statement on this matter at the present time, I will, with the hon. Member's permission, circulate certain further details in the OFFICIAL REPORT. I should, however, like to say that His Majesty's Government welcome the conclusion of this Agreement in the confidence that it will facilitate the removal of at least some of the disabilities under which British and other third Power nationals and their trading and shipping interests have been suffering in China, and also as a manifestation of the possibility of solving the mutual difficulties between our country and Japan by patient negotiation.

Sir J. Wardlaw-Milne

I would like to ask my right hon. Friend two questions. Will he tell the House what has happened regarding the barricades that were erected round the Settlement, and can he say whether his reply referring to the silver deposited refers to the whole of the Chinese silver in British hands or what proportion of British silver; also whether it refers to that silver only?

Mr. Butler

In answer to the first point, the barricades round the concession are now being removed; and in regard to the second point, I think I should prefer to call it the Chinese silver. The Agreement provides for about one-tenth of the total amount to be used for the humanitarian purpose of relieving distress among the famine-stricken population in the Northern areas, while the balance will remain under seal in the bank until its ultimate disposal can be decided later.

Following are the further details:

Certain particulars of the Agreement relating to Tientsin signed at Tokyo on 19th June on behalf of His Majesty's Government and the Japanese Government are being laid before the House in a White Paper. This paper comprises a joint communiqué summarising the objects of the police agreement together with the text of the agreements reached on silver and currency. I would add the following observations to what I said in my Oral reply to the hon. Member.

The police arrangements provide for closer co-operation between the British municipal administration and the local Japanese authorities in cases against persons in whose criminal activities the latter are interested. I wish to emphasise, however, that in such cases the necessary action will always be taken by the municipal police themselves and that the administrative integrity of the British Concession is fully preserved in the Agreement.

The Japanese Government have contended that the silver reserves belong to the people of North China and should be surrendered for their use. The Chinese Government on the other hand claim their ownership as part of the reserves for the national currency. The provisional agreement now reached does not prejudge this issue. It provides that about one-tenth of the total amount shall be used for the humanitarian purpose of relieving distress among the famine-stricken population in the northern area, while the balance shall remain under seal in the bank until its ultimate disposal can be decided in a less controversial atmosphere than is now possible. This settlement of the problem has received the assent of the Chinese Government.

The circulation of the Chinese national currency within the British municipal area will continue. Federal Reserve Bank notes have, however, for some time past circulated side by side with the national currency. This existing state of affairs is recognised in the Agreement.

As hon. Members are aware, barricades have for the past year been maintained round the Concession and numerous restrictions have been imposed on its residents. These barricades and restrictions are now being removed and the Japanese authorities in North China have also undertaken to do everything in their power to suppress any anti-British action or agitation in the regions under their control.