§ Mr. Butler
My Noble Friend has no information regarding the actual details of what is proposed in regard to the functions of the special section, but he is assured that the working understanding come to with the Japanese authorities is not of a nature to impair the authority of the council.
§ Mr. Porritt
asked the Prime Minister whether he will state the reason given by the Japanese for their refusal to evacuate British-owned mills at Shanghai?
§ Mr. Butler
The British-owned mills and other works at Shanghai which are at present occupied by the Japanese are the former Chun Tah mill and the adjacent China Dyeing Works, the Sung Sing No. 7 Cotton Mill, and the Hume Pipe (Far East) Limited. The Japanese authorities at Shanghai, despite the explanations furnished to them by His Majesty's Consulate-General, still profess to doubt the British ownership of the first three mills. The fourth is situated on Point Island, which has for some months been in the occupation of the Japanese military authorities, who have established there the headquarters of their Transport Unit. Further representations were recently made by His Majesty's Ambassador in Tokyo, and His Majesty's Government will continue to do their utmost to secure speedy evacuation of the mills in question by the Japanese.