§ Mr. A. Hendersonasked the Prime Minister whether he will make a statement on the present military situation in China?
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§ Mr. ButlerSince their success at Taierchwang early in April, during which the Chinese Army claim to have captured large numbers of prisoners and material, fighting in South Shantung has continued, but apart from local Japanese gains there has since been no appreciable change in the situation. The Japanese have reinforced their troops on the southern sector of the Tientsin-Pukow railway front and have made some progress northward. At the same time, a Japanese force has been making its way up the centre of Kiangsu Province towards the port of Haichow, where it appears that preparations for evacuation are being made by the Chinese.
Chinese guerilla activities have recently been intensified, notably round Peking and along the northern section of the Peking-Hankow railway. Sections of the line were destroyed at various points and train traffic was suspended for about three days at the end of April.
On 10th May the Japanese, after an air and naval bombardment, landed on Amoy Island, where the town of Amoy is situated; pamphlets were dropped by Japanese aeroplanes requesting foreign residents to leave. The situation on the Island of Kulangsu (where the great majority of British subjects reside) is quiet.
§ Sir J. Wardlaw-Milneasked the Prime Minister whether, in the recent negotiations with Japan for the allocation of the China customs revenue, any understanding was reached that no change was contemplated in the international character of the Chinese customs service?
§ Mr. ButlerIt has not been found possible to secure any definite undertaking of the nature indicated but the Japanese Minister for Foreign Affairs has given an oral assurance that the Japanese Government has every intention of maintaining the integrity of the Customs to the full extent to which the present abnormal situation permitted.
At the same time I wish to take this opportunity of making it clear that there is nothing in the arrangement recently negotiated at Tokyo to justify the suggestion put out in some quarters that His Majesty's Government have acquiesced in any interference with the Customs service and its present international personnel. On the contrary His Majesty's Government have repeatedly impressed upon the 1733W Japanese Government the interest which they take in maintaining in every respect the authority and integrity of the Maritime Customs service in its present form, and the administration of a uniform tariff for all China applied impartially to the trade of all nations.