77 Mr J. A. Lyons, Prime Minister, to Mr S. M. Bruce, High Commissioner in London

Cablegram unnumbered 7 October 1937,

Consul General China [1] interviewed me this morning and while expressing appreciation of attitude which Australia had taken up during dispute intimated that his Government would be grateful of the friendly co-operation of Australia in an effort to end the dispute. He asked that this be transmitted to you.

Consul General, Japan [2], has also communicated with Commonwealth Government over press reports relating to proposals by certain bodies for boycott of Japanese goods and asks that Government take steps to prevent such action which would jeopardise friendly relations. [3]

I have replied to him [4] and also made public statements to effect that Australia is associated with present League efforts and that any measures for settlement should be outcome of collective agreement and action and not matter for unilateral action. As consequence expressed disagreement with any action such as economic boycott against one of parties which would prejudge issue.

Incidentally wiser counsels are prevailing in regard to suggestions for boycott and agitation quietening due to conflicting viewpoints in bodies in which they have emanated.

1 Dr Chun Jien Pao.

2 Torao Wakamatsu.

3 Document 73.

4 Document 74.

[AA : A981, CHINA 114, X]