The Archive · 1940

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1. 'The British concession to Japan was primarily due to United States unwillingness 10 support. Britain the Far Bast in the event of a rupture relations with Japan. The recent 'American ban on serap' metals, aviation gasoline and petrol, the establish-mont of on. American-Canadian joint defence board, and discussions for the faequisition of naval and nie bases by the United States all tend to indicate closer ce-operation beween the United States and Britain and a stronger American policy towards Japan in the Far East, The British agreement to close the Burma Revd was duc to a Jupanese threat against French Tnclo-China. Following the collapse nee and also Indo-China's allexiance to the Vichy Government, the position of Indo-China in the light of Allied defence plans ly now on an ntitely different footing. Britain ve-Ties now more on China than Indo-China for the defence of Singapore and British interests in the Far East.

3. Britain is anxious to sce a strong China which can absorb the main strength of Japanese forees in Chinese territory, thereby exhausting the sources and manpower of Japan, Which would otherwise be in a pos tion to give active support to Germany's operations against Britain, 4. Britain is eager to maintain close and. friendly" relations wit Soviet Russia, Thereforg, Britain's policy in the Far Enst cannot be contrary to Russian policy, which obviously desires a strong China and wants Japanese armed forees to be Kept oeeupted in China,

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