§ Captain A. Graham
asked the Secretary of State for Foreign Affairs what restrictions are now placed by the Japanese authorities on imports into and exports from the parts of China in their occupation; and to what extent such restrictions affect British trade?
§ Mr. Butler
In North China the Japanese authorities have established an elaborate system of exchange and trade restrictions exercised through the customs by which all trade is made subject to the control of the Japanese-sponsored Federal Reserve Bank. In Central and South China there has also been a tightening of Japanese restrictions. In580W June last new regulations were enforced for the control of all trade with the hinterland ostensibly for military reasons. Permits to transport goods to and from the interior can only be obtained through Japanese nationals and there is a tendency to restrict permits to certain monopolistic marketing associations in various trades, such as soap, oil, tobacco, sugar and silk. British and other foreign merchants are being severely affected by all these measures in the occupied areas.