§ 3. Mr. Hannahasked the Secretary of State for Foreign Affairs whether he has yet received a report on the Japanese policy of restricting the import of sugar into China to imports from Japan and Formosa to the exclusion of imports by British firms?
§ Mr. EdenI am unable to say what the Japanese intentions are in this matter, but I am informed that in March a British firm at Tsingtao received permission to import consignments of sugar from Hongkong on terms which they regarded as sufficiently satisfactory in present conditions.
§ Mr. HannahCannot we, with America, make representations to Japan to get something done?
§ 4. Mr. Hannahasked the Secretary of State for Foreign Affairs whether he has yet received a report with regard to the declaration made by the chairman of the Peking Peoples' Anti-British Association that no leniency should be shown to anybody openly selling British goods; and what action he has taken in the matter?
§ Mr. EdenYes, Sir. The report received indicates that there is no evidence that the sale of British goods in Peking has been affected by the activities of the anti-British association. In the circumstances the latter part of the question does not arise.
§ 10. Sir John Wardlaw-Milneasked the Secretary of State for Foreign Affairs whether he is aware that all shipping services, except Japanese, between Shanghai, Ningpo and other ports on the coast of Chekiang Province have been banned by the Japanese authorities on the alleged ground of military necessity; to what extent British shipping companies are affected; and what action he has taken to stop this arbitrary discrimination against British trade?
§ Mr. EdenBy proclamations of 15th July and 10th August, 1940, the Japanese naval authorities prohibited the entrance of ships of any nationality into certain specified areas along the coast of China, including ports in Chekiang province. Since that date British shipping with Chekiang ports has for the most part been suspended. All British rights have been formally reserved and representations have been made to the Japanese authorities regarding interference with British shipping.
§ Sir J. Wardlaw-MilneIn view of the fact that any alleged necessity for military reservation at the time the order was made by the Japanese last year has now to a great extent passed away, having regard to the changed conditions in Northern China, will my right hon. Friend now make more energetic representations in this matter?
§ Mr. EdenI am entirely in agreement with my hon. Friend's premises in regard 1324 to the situation. This is all wrapped up with the general position of our relations with Japan. As I have explained, if Japan complains to us about the economic restrictions which they allege that we impose upon them our answer is that until they meet us on matters which concern us we can do nothing to help them.
§ 11. Sir J. Wardlaw-Milneasked the Secretary of State for Foreign Affairs whether he is aware that, under the policy of the Japanese Asia Development Board, all but Japanese yen currencies are to be gradually excluded in private and commercial transactions between North and Central China; whether, in consequence of this policy, both Chinese national currency and sterling will be prohibited; and what steps he is taking to prevent this interference with the freedom of trade?
§ Mr. EdenHis Majesty's Government are aware of the restrictions placed by the Japanese on the use of the Chinese national currency in the areas occupied by them and frequent protests have been made to the Japanese Government at the injury thereby caused to British interests. I would also remind my hon. Friend of the financial assistance which His Majesty's Government have given to the Chinese Government in support of the Chinese national currency. Sterling is not one of the currencies in use in China and the question of its prohibition does not therefore arise.