Chamberlain, in making his statement fon the Anglo-Japanese Agreement in the House of Commons today, said that at the outset of preliminary discussions in Tokyo, the Japanese ernment had expressed the view that progress was to be mode for the removal of misunderstanding and the establishment of better relations, it Was essential to recognize the back-round against which the situation "Tientsin should be viewed.
"this had nothing to do with the British Government's China policy, Dut was a question of fact Hostil chi les were proceeding in China on a large scale. The Japanese Army had to provide for its own security and maintain public order in occupied areas and therefore, was obliged to take action to see that these forces were not prejudiced.
order to clear the way for the Tientsin discussions, Mr. Chamberlain proceeded, the British Government accordingly agreed upon the followin: formula with the Japanese Gover! ment.
"H. M, Government in the United Kingdom fully recognize the actual situation in China where hostilities on a Targe scale are in progress ote that as Tong as that ata oifairs continues to exist, the Japanese forces in China have special requirements for the purpose of their own security and mai public order in regions under Control and that they have to suppressor remove any such acts or Eouses as will obstruct them or benefit their enemy.
"H, M, Government have no into tion of countenancing any aet pro judicial "tothe attainment of the Above-mentioned objects by the Japanese force, and they will take this opportunity to confirm their polley in this respect by making it plain inthe British authorities an British nationals in China that they ain from such aes and Mr. George Strauss, Labour member for North Lambeth, asked the Premier whether he "will give the assurance that the Chinese silver re~ serve in Tientsin valued at £2,500,000 will not be strrendered'to Japan?"
The Japanese Government have never formulated {0 His Majesty's Government any proposals regarding the disposal of this silver reserve," Mr. R. A. Butler, Under-Secretary for Foreign Affairs, stated.
"Can the Prime Minister say if the silver reserve is lodged with a British bank and would it not be advisable in view of the unsettled state affairs in Tientsin to move it out of harm's way?" asked Mr. Frederick Bellenger, Labour member for the Bassetlaw Division of Nottingham~ shi "should that question," Mr. Butler replied.
"Does the Prime Minister suggest that the Chinese Government would be anxious for us to hand it over to the Japanese," Mr, Aneurin Bevan, Labour member for the Ebbw Vale Division of Monmouthshire, asked.
Mr, Butler replied in the negative.
Agitation to Be Controlled "His Majesty's Ambassador has represented to the Japanese Govern= ment the great importance of dis~ couraging press recriminations and exaggerated claims which can only prejudice the result of the nego Mations on Tocal issues now about to Lord Malifax States Case identical statement to that m the House of Commons today the Prime Minister, Mr. "Neville Chamberlain, on the Tientsin diss cussions, was made by the Secretary of State for Foreign Allairs, Lord Halifax, in the House of Lords Lord" Halifax, progress of the conversation to the Anglo-Japanese ayre was understood between Mr. Hachiro Arita (the Japanese Forei Minister) and Sir Robert Craigie (the British Ambassador)
L.=It was not part of the ese intention to preclude the ish Government making represent 2—The British Government expressed the view that nothing in the formula affected the position of the obligations of other Powers; 'sir Robert Craigie had_represented to the Japanese Government the great importance of discouraging press recriminations and exaggerated claims, which could only prejudice the' result of the hegoations on local issues now about to open; and 4—Sir_Kovert Craigie had made strong representations "regarding, the Japanese Polley Fixed was to be expected that this agitation, Lord Halifax continued,
Text read from the printed page and cleaned; old type leaves the occasional error.