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"The Japanese Government has now replied to the communication which our Ambassador in Tokyo was instructed to make. The substance of the reply is that they welcome the proposed procedure. They request that if a vessel flying the British flag it [is?] visited for verification purposes by a British warship, the results of the investigation should be communicated to the Japanese naval authorities immediately; and they add an expression of hope that precautions will be taken to prevent the misuse of the British flag by Chinese vessels. As regards visits of investigation when no British warship is in the vicinity, the Japanese Government state that when a vessel flying the British flag it [is?] visited and it is established that it is a British vessel there is no objection to informing the British naval authorities by the quickest available means. They add in this connection that they hope that it will be appreciated that when Japanese warships carry out a visit a number of inspectors will be sent and the necessary ships' documents will be examined.

This reply is not regarded by His Majesty's Government as entirely satisfactory and Sir Robert Craigie has now been instructed to inform the Japanese Government that His Majesty's Government require to be informed of any visit of inspection made by a Japanese warship to a vessel flying the British flag, whether or not the Japanese authorities consider after investigation that the vessel is entitled to fly the British flag. He has also been instructed to point out that the verification of a certificate of registry is a very simple matter and one which can easily be carried out by one man with a knowledge of English; the boarding of a ship by a number of inspectors would therefore be both unnecessary and unjustifiable.

Your Government will no doubt be aware that the Japanese Government have recently issued a statement to the effect that they will not recognize the validity of transfers of nationality of Chinese ships subsequent to the 25th August unless the transfer was effected in accordance with the laws of the countries concerned and fully completed; the statement adds that suspected ships may be detained and inspected for verification purposes. His Majesty's Government have not felt able to let this announcement pass unremarked. Sir Robert Craigie has accordingly been instructed to inform the Japanese Government that the statement which they have issued is difficult to follow. If the transfer of a vessel to British registry in accordance with English law has not taken place the vessel in question does not fulfill the requirements entitling her to fly the British flag; and this fact would be duly revealed in suspicious cases by a visit for flag verification purposes. If a valid transfer has taken place, and the vessel is entitled to fly the British flag the fact that the transfer has taken place since 25th August is completely irrelevant. His Majesty's Government, however, presume that the Japanese Government do not mean to imply that they will not recognize valid transfers subsequent to the 25th August; such an attitude would be inadmissible and His Majesty's Government could not acquiesce in it. Nor can the legal validity of any transfer under English law be determined by any but British authorities. In making a communication on these lines, Sir Robert Craigie is to state orally to the Japanese Government that, in point of fact, measures have been taken which will ensure that any applications for transfers which may be made will be scrutinized with

the utmost care, with a view to making certain that all the necessary conditions are fulfilled."

JOHNSON

793.94/10335: Telegram

The Ambassador in China (Johnson) to the Secretary of State

NANKING, September 30, 1937-6 p. m. [Received September 30-10:30 a. m.]

741. Commander-in-Chief reported in his despatch 0024-1610 attacks upon Chinese fishing fleets off southern coast. Further details are reported in Hong Kong's telegram of September 29, 4 p. m.21 This action, it seems to me, merits some comment by us in any case and representations [to] that effect made to the Japanese Government as being contrary to ordinary international practice.

JOHNSON

793.94112/96: Telegram

The Secretary of State to the Chargé in the United Kingdom

(Johnson)

WASHINGTON, September 30, 1937-7 p. m.

402. Your 621, September 29, 5 p. m. The Department suggests that you reply to the Foreign Office's note, either orally or in writing, substantially as follows:

On the basis of the considerations communicated to Embassy in the Department's No. 374 of September 1, 7 p. m., this Government has made no approach to the Japanese Government on the subject of visits, for verification purposes, by Japanese naval vessels to American merchant ships in Chinese waters. Our Embassy at Tokyo has been informed by the Japanese Foreign Office that, although copies of the Foreign Office's statement of September 18 regarding Japanese nonrecognition of transfers of vessels to [from?] Chinese registry made subsequent to August 25, 1937, were sent to the British, French and several other missions at Tokyo, none was sent to the American Embassy for the reason that no case had arisen of Chinese vessels acquiring American nationality after the date mentioned. Consequently no occasion has arisen for discussion of this subject by this Government with the Japanese Government.

The courtesy of the British Foreign Office in informing this Government of its action in reference to this matter is appreciated.

HULL

21

"Not printed.

793.94/10345: Telegram

The Consul General at Canton (Linnell) to the Secretary of State

CANTON, October 1, 1937-9 a. m. [Received 9:03 a. m.]

Canton River closed to navigation from 6 a. m. today by order of Military Headquarters. While river continues closed Canton-Hong Kong Railway offers only means of transportation between the two cities. It is officially stated, however, that a motor road is being constructed and is expected to be completed soon.

Hong Kong mail to Swatow.

LINNELL

893.822/6 Telegram

The Ambassador in Japan (Grew) to the Secretary of State

TOKYO, October 1, 1937-5 p. m. [Received October 1-8:08 a. m.]

440. Our 427, September 28, 11 a. m.,22 China coast lighthouses. The Foreign Office today replying [replied?] orally to the effect that the Japanese Navy has no intention of interfering with Chinese coastal lights, that it has not molested Chinese lighthouse supply ships, and that it is exercising utmost caution to avoid interference with coastal lights.

Repeated to Shanghai.

GREW

793.94/10544: Telegram

The Consul General at Canton (Linnell) to the Secretary of State

CANTON, October 9, 1937-5 p. m. [Received October 10-5 a. m.]

Reference is made to my October 1, 9 a. m., concerning the blocking of Pearl River. This morning by permission of the military authorities 18 foreign vessels which had been shut into river by the block were passed through the barrier for Hong Kong. Arrangements were made for an American tug and two tank barges loaded with oil, et cetera, belonging to Standard Oil Company to come through to Canton from Hong Kong. The block has been reestablished for the present.

22 Not printed.

LINNELL

793.94/10774: Telegram

The Consul General at Canton (Linnell) to the Secretary of State

CANTON, October 21, 1937-3 p. m. [Received October 21-7: 55 a. m.]

Referring to my October 17, noon,23 Pearl River was opened yesterday for vessels drawing not more than 7 feet, during daylight hours except Sunday. Standard Oil Company tug and four tank lighters came through from Hong Kong.

Air raid last night on Sheklung Bridge of Canton-Hong Kong Railway again unsuccessful.

Vernacular press has persistently carried statement that Hong Kong Government has demanded removal of Japanese warships from Hong Kong waters. British Consulate [at] Canton states that this is not true.

Mailed Hong Kong.

LINNELL

793.94/10902: Telegram

The Consul at Hong Kong (Donovan) to the Secretary of State

HONG KONG, October 30, 1937—10 a. m. [Received October 30-2: 22 a. m.]

Referring to my September 30, 7 p. m., and October 9, 4 p. m.24 regarding activities of Japanese submarines near Hong Kong, although the Commission appointed by the Hong Kong Government to investigate the recent sinking of fishing junks by naval gunfire at Cheelong Light near Hong Kong has not as yet announced its findings, I have been informed by Sir Athoel MacGregor, Chief Justice of Hong Kong and Chairman of the Commission, that the Commission has found "that the sinking was caused by the barbarous, wanton, and unprovoked attack of a Japanese submarine". The Chairman further stated that the testimony of a British naval officer who appeared as an expert witness, but who had not actually seen the submarine, was very important factor in the Commission's findings with respect to the nationality of the submarine.

The Japanese Consul General declined to participate in the investigation in any capacity. The Portuguese Consul sat as an observer. All sessions of the Commission were public and conducted on judicial lines with strict regard to the laws of evidence.

23 Not printed.

24 Neither printed.

The Commission's report will not be made public for another 10 days but it is probable that an advance copy will be supplied to this office for transmission to the Department.

Repeated to Tokyo, London, Nanking.

DONOVAN

793.94/11701: Telegram

The Commander in Chief of the United States Asiatic Fleet (Yarnell) to the Chief of Naval Operations (Leahy) 25

[SHANGHAI,] December 19, 1937–4 p. m. [Received December 19-8:20 a. m.]

0119. An officer Japanese Navy informed Admiral Holt 26 at Nanking that the channels through Mudfort and Kiangyin barriers have been made solely for use of the Japanese forces and not for the use of neutral shipping and that passage of H. M. S. Ladybird, U. S. S. Oahu and others of that convoy cannot be taken as a precedent.

793.94/11718: Telegram

The Ambassador in China (Johnson) to the Secretary of State

HANKOW, December 20, 1937-10 a. m. [Received December 20-1 a. m.]

90. My 87, December 20 [19], 10 a. m. [2 p. m.].27 Have just received official notification from Foreign Office stating river has been effectively blocked below Kiukiang as of 12 noon today. Steamer connection between Hankow and Shanghai now cut off. Communication by rail and air remains.

Repeated to Peiping, Shanghai. Peiping repeat to Tokyo.

JOHNSON

793.94/11791: Telegram

The Commander in Chief of the United States Asiatic Fleet (Yarnell) to the Chief of Naval Operations (Leahy)

25

[SHANGHAI,] December 24, 1937-6:34 p. m. [Received 9:45 p. m.]

0024. Following letter dated 21 December received from Commander in Chief Japanese Fleet in China:

25 Copy transmitted to the Department by the Navy Department.

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