London, May. 26. RITISH Government authorities last night took a serious view of the Japanese proclamation of a virtual blockade of the China coast in Shanghai yesterday -and indicated that British economic retaliation against Japan, probably in ce-operation with the United States, might be forthcoming soon.
"Without admitting the legal existence of a state of war," a Government spokesman said, "Japan appears to be arrogating to herself full belligerent rights."
The Japanese spokesman in Shanghai said yesterday that all foi in ships within 200 miles of the China coast would be subject to detention by the Japanese Navy for an inspection of registration papers and to determine whether cargo "helpful to the Chiang Kai-shek regime" is being carried.
The spokesman said a contraband list was under consideration but that because of the complicated nature of such a list, it could not yet be dis~ closed.
Attention was attracted here to the spokesfhan's remark that "it is not a matter of rights, but what the Japanese demand," in explaining the grounds for Japan's action, Not Formally Communteated Consultations between the British and American governments are be~ loved likely because of the Japanese proclamation. The Japanese an~ ouncement of extension of the blockade regulations has not yet been formally communicated to other gov-fernments interested in China, it was understood, The British Government may await! further developments before resorting to actual retaliation against Japan, but consultations with American outhorities in the immediate future are cheved probable, British circles believed the United States might finally decide to apply the Neutrality Act ayainst Japan in the event the illegal Japanese block ade "Is enforced against American shipping.
The suggestion of convoying British merchant ships through China waters was considered impractical here because of the huge costs and the lack of a suiMlcient number of British war= ships inthe Far East, Export opinion believed that Brit.
n would await developments and if her hand is forced. she would probe ably: resort to retaliation, presumably after parallel action by the United Stotes has been assured.—United Pres
Text read from the printed page and cleaned; old type leaves the occasional error.