Japan will protest Posed guaranteeing by the British Government of the £5,000,000 Britis! share in a £ 10,000,000 China currency stabilization loan, well-informed quarters indicated tonight. es to deal with Nationalist Central and South China likely to oe intensified as a retail measure.
Sir Robert Leslie Ci gie, British Ambassador. this morning called on Mr, Renzo Sawada, Vic Minister for Foreign Affairs, to assure the Japanese Government, it is understood, that the projected loan was motivated by economic reasons and did not rezresent a political move.
These assurances, it' was however understood, have not been accept: i by the Japanese authorities w rot r d the guaranteeing of the loan as a "purely" financial move. Japanese officials tended to regard the motive of the projected action of the British Government as entirely different from that embodied in the extension of the Exports Credi Guarantee Act.
On the other hand, financial circles were inclined to consider the loan as evidence of the difficulties confronting the regime of Gen Chang Kai-shek in maintaining the value of its currency as a result of the heavy drain on Chinese foreign currency holdings.
This situation was believed here to have prompted Britain to extend aid to China so as to prevent a complete collapse of Chinese cure with resultant heavy losses to British
Text read from the printed page and cleaned; old type leaves the occasional error.