[Anglo-Japanese tension in North China reached a peak on 14 June
1939 when Japan instituted a blockade of the British and French
concessions at Tientsin and proceeded to obstruct British business
and inflict indignities upon British residents. The immediate
cause was the refusal of the British to hand over to the Japanese
four Chinese, alleged by the Japanese to have murdered an official
of the Japanese-sponsored regime in North China. The accused
Chinese claimed that the only evidence against them had been
obtained by torture.]

Tientsin. Dominions Office and Stirling's cables [1] have informed
you of the facts. Difficult to express definite views as to wisdom
of course pursued to date probable developments and policy which
should be pursued. On original issue namely the handing over of
four men without production of evidence by Japanese authorities,
two opposite views were exposed. The Consul-General on the Spot
[2] was strongly of the opinion that sufficient evidence provided
and recommended that the men should have been handed over. This
view supported by Ambassador to Japan [3] and local British
community. The Ambassador to China [4] tended to oppose advice on
both points. In my view Consul-General was right and the
Ambassador to China who at the time was visiting Chinese areas and
in personal contact with Chiang Kai-shek' was too much influenced
by atmosphere and representations made to him that the men should
not be handed over.

Whether wise or unwise the Foreign Office decision was that the
men should not be handed over and it now seems impossible to do so
save as a result of an impartial examination such as has been
suggested without a serious burden in loss of prestige and
encouragement to the Japanese to further action.

Both British Ambassador to Japan and Consul-General at Tientsin
now agree that under present military pressure Government's
decision must remain unchanged.

The issue has now however become much wider and the question of
future British interests in North China if not throughout the Far
East may well depend on strong action being taken in present
situation.

As indicated in Stirling's cable possible (group mutilated) action
now being fully examined.

Present indications are that statement will probably be made at
the beginning of the week setting out the United Kingdom position
in such a way as to appeal to neutral opinion especially United
States making clear the United Kingdom will not submit to force
and if persisted in retaliatory action will be taken but
indicating that if Japan modifies her present attitude, the United
Kingdom Government is fully prepared to make amicable arrangements
for the settlement of the terrorist issue.

BRUCE