China: Tientsin negotiations^—-
BRITISH EMBASSY,
WASHINGTON, D, C.
No« 349 April 18th, 1940,
My Lord,
With reference to the correspondence ending
~ l&j ***** Your Lordship's telegram No. 574 of the 14th
April, I have the honour to transmit to Your Lordahlp
6/   herewith copies of an Aide Memoire handed by my
Counsellor to the Head of the Par Eastern Division at
the State Department today setting out the result of
the negotiations between the Japanese Government and
His Majesty's Ambassador at Tokyo arising out of the
situation at Tientsin.   I also enclose copies of a
draft memorandum containing the text of the formula
on currency stated In Your Lordship's telegram under
reference to have been agreed to by the Japanese
Government.   Mr. Butler observed to Hr» Hamilton that
we were not certain that the finally approved text was
word for word identical with that in the draft memo-
randum.   He explained that the Japanese had withdrawn
their demand for a prohibition on the circulation of
Chinese national currency In the Concession.   I'e added
that we were awaiting the Japanese agreement to our
demands as regards withdrawal of the Japanese barrier
restrictions which was a sine qua non to an agreement,
and that an announcement would follow regarding the
control of terrorist activities in the Concession.
Mr. Butler promised that these texts would also be
communicated to the State Department as soon as they
rt *^ » !r\ 9   *W "eceived by the Embassy.   lie repeated that we believed
INDcA thit/
The Right Honourable
The Viscount Halifax, K. G., NMB:CB:CL
etc.,       etc., etc.
7
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that the above agreements were consistent with the
principles of the Nine Power Treaty and with the
policies that His r'-ajeety'e Government were seeking
to carry out in step with other governments.
2. Mr. Hamilton expressed gratitude for the
two documents communicated to him and said that they
seemed to correspond with information about them which
the Ttate Department had received already from the
United States Ambassador at Tokyo*   lie made no further
comment having a very busy afternoon with the recretary
of St?ite concerning other I?ar Eastern problems that
required urgent attention.
3. I am sending copies of this despatch with
the enclosures to Hie Hajeety's Ambassadors at Tokyo
and Shanghai•
I have the honour to be,
with the highest respect.
My Lord,
Your Lordship's most obedient
humble servant,
(SOD) LOCHIA!*