Steps were taken by the Japanese authorities yesterday temporarily to impound a cargo of rice brought in by the B. & S. s. Kaying, which arrived off the French Bund in the morning. Questioned on the affair. the Japanese spokesman at the afternoon conference said that the papers covering the cargo were held by the Central Trust Inasmuch as the cargo was covered by a huchiao, it was believed by the Japanese that the consignment was for the Chinese Government.
The rice, the spokesman asserted, was entered duty free, If the cargo were for the Government, according to the spokesman, the Japanese could seize it as contraband. Its ultimate disposition would be made public when all facts had been ascertained, he concluded, The rice, it is understood, was consigned io a French dealer in Shanghai, but the Japanese authorities threatened to take action unless the unloading of the cargo were delayed pending an investigation into its destination. The spokesman said that the Japanese were suspicious that it would be used as supplies for Chinese troops in the fighting, area.
Tt was ascertained yesterday that the rice for distribution in Shanghai, and was intended to relieve the shortage in the city. As the delay in the unloading was the result of a misunderstanding, no protest is contemplated at present, but it is considered probable that representations to Admiral Hasegawa Will be made if the unloading is still delayed after explanations have been offered.
Text read from the printed page and cleaned; old type leaves the occasional error.