As the result of discussions which have taken place between the British and the Japanese authorities since July, 1939, in regard to questions affecting the British Concession in Tientsin, agreement has been reached on the following points:
1. Maintenance of law and order within the British Municipal Area:—
Detailed arrangements have been made for closer cooperation between the authorities of the British Concession and the local Japanese authorities for the suppression of all terrorist activities prejudicial to the maintenance of peace and order and to the security of the Japanese forces. In particular, arrangements have been made for Japanese Gendarmes to offer information and to be present when action is taken by the British Municipal Council Police against persons in whose criminal activities the Japanese authorities are interested.
Such action will include supervision of dealings in arms and explosive substances, supervision of publications, cinemas and political meetings and arrest and disposal of persons engaged in the activities mentioned in the preceding paragraphs. Arrangements have also been made for the suppression of unauthorized wireless communications.
2. Silver Coin and Bullion:—
The silver coin and bullion now in the Bank of Communications in Tientsin shall remain in that Bank under the joint seal of the British and Japanese Consuls-General in that city. Except as provided in paragraph 3 below, this silver shall remain under seal until such time as the Governments of the United Kingdom and Japan shall agree upon other arrangements for its custody. The silver shall be sealed in the presence of the British and Japanese Consuls-General in Tientsin.
Before the silver is thus placed under seal a quantity equivalent to the sum of £100,000 sterling shall be set on one side to provide a fund for the relief of famine conditions resulting directly from the floods in certain areas and the drought in other areas of North China. Such relief shall include the provision of certain machinery urgently required from abroad to drain the water from the flooded areas, thus diminishing the danger of epidemics. The appropriate British authorities will be prepared to give all possible facilities to enable the silver thus set on one side to be allocated for relief purposes; to be sold; and to be used for the purchase of foodstuffs and other articles required for relief.
The British and Japanese Consuls-General in Tientsin shall appoint experts who, under the supervision of the Consuls-General, will assist them in the administration of this fund and will advise the existing Relief Committee in Peking as to the distribution of the food and other articles required for relief purposes. In addition to British and Japanese experts, experts of Chinese and French nationality and one expert of another nationality shall be invited to assist in this work.
3. Currency:—
The British Municipal Council will place no difficulty in the way of the use of Federal Reserve Bank currency within the British Municipal Area. The British Municipal Council have decided to withdraw the licences of all exchange shops not established prior to 1939. Licences will not be issued to new shops unless they are vouched for by the Native Bankers Guild and have adequate capital. Licences will be renewable monthly. Any points of difficulty which may arise in connexion with the application of the measures mentioned in the preceding paragraphs will be discussed locally between the British and Japanese Consuls-General.