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Includes: Outline of the main headings into which the report is divided. Anglo-Japanese relations. Possible involvement of the Dutch East Indies in the European war. Solution of the Teintsin [Tianjin] silver problem and use of Federal Reserve Bank currency. Japan demands closure of the Burma road,* whilst virtual blockade of Hongkong compels evacuation of women and children. F.M.S. passes compulsory service bill and the defences of Singapore are strengthened. UK agrees to 'temporary' closure of the Burma road. Arrest of ten British subjects in Japan and death of Cox, the Reuter correspondent. British troops withdrawn from Tientsin [Tianjin] and Shanghai. Signature of military alliance between Germany, Italy and Japan. Britain re-opens the road. Anglo-American Relations. Comparative British and American reactions to Japanese actions. USA repudiates the 'Asiatic Monroe Doctrine '. Lend-Lease, destroyers for Atlantic bases impresses Japan as enabling USA to keep its main fleet in the Pacific. Embargo on export of petroleum products and scrap steel. Agreement for joint use of naval and air bases in South Africa, Australia New Zealand and Malaya. China gets credit against sales of Tungsten. Japan and the Axis. Germany disclaims interest in Netherlands East Indies. Japan enters military alliance with the Axis Powers. Molotov visits Berlin to define the Soviet position in relation to the Tri-partite Pact and to discuss political and economic relations, particularly with Japan. A Neutrality Pact with the Soviet is signed in April. Hess flies to Britain Japan and the Pacific. Delineation of the Japanese sphere of interest in the South Seas. Japanese investments in mines, plantations etc. in the area, and its share of the trade. Japanese and American statements on their interest in the Dutch East Indies. Japan tells Germany and Italy that she expects to be consulted on matters affecting the future of Indo-China, following the capitulation of France. China asks France to keep Indo-China open for the transit of supplies. Thailand attacks Indo-China with Japanese tacit support and Japan obtains rights to establish air bases and troops, treaty with Thailand. Japanese demands for trading and development facilities in the Dutch East Indies refused. Trade statistics add world petroleum production. Importance of Clause 2 of the Russo-Japanese Neutrality Pact. Effect of the Pact on Sino-Soviet relations. Anglo-American Alignment. Summary of the growing closeness of relations and policies, attitude towards the Dutch East Indies, economic pressure by the USA when Britain compelled to give way, cession of Atlantic bases and agreement for common use of naval and air bases in the Pacific. Importance of its trade with the Pacific countries to the USA. Preliminary evacuation of American civilians from China, Japan, Hongkong and Indo- China, and dependants from the Peking [Beijing] Embassy. Japan signs a treaty with the puppet government of Wang Ching-Wei* and both USA and Britain give loans to China. Signature of the Land Lease Act and Roosevelt's declaration of support for Britain, China and the democracies. Military Events in China. Japan makes little significant progress except in the South where they reached positions enabling them to interrupt the use of the Haiphong Kunming railway and to attack Kunming and the Burma road from the air. Later withdrawal when France and Britain stop the despatch of supplies on these routes. Survey of the size and importance of the occupied areas. Friction between the forces of the Chungking government and the Communists. Disbandment of the 4th Army. Communist demand for the establishment of a joint committee and suspension of political pressure. Administrative, Currency and Trade. Signature of peace terms with the Nanking [Nanjing] government, commentary thereon. Constitution of the Peoples Political Council. Economic questions. Activities of the Chinese Currency Stabilisation Board, exchange rates during the year. Utilisation of them American and British credits. Chungking issues Construction Gold Bonds and reduces the official exchange rate. Banking regulations. Establishment of the Central Reserve Bank by Nanking [Nanjing] and its issue of notes at par with fapi. Note Circulation in free and occupied territories. Federal Reserve Bank. Control of imports. F.R.B. Currency replaces national paper. Trend of Wholesale prices in Shanghai, Chungking and Teintsin [Tianjin]. Effects of inflation. Foreign Trade. Statistics and commentary. Customs and Salt Revenue and Loan Servicing. Industrial Production and the Railways, China's co-operatives. Affairs of Shanghai. Municipal Council agree to hand over the Land Office Records to Mayor Fu Siao-en. Departure of British troops and rearrangement of defence sectors. Chairman of the Japanese Ratepayers Association Y. Hayashi attempts to assassinate W.J. Keswick, Chairman of the Council. The point at issue was a proposal to increase taxation to cover a deficit in the Council's finances. Agreement is reached on a proposal to reorganise the constitution of the Council and its functions. Mayor Fu Siao-en is murdered. Other Treaty Ports and Hongkong. Teintsin [Tianjin] currency situation. Continuous guerrilla activity. Trade of Hankow [Hankou] and Canton [Guangzhou] small owing to continued closure of the Yangtsze and Pearl Rivers. Tsingtao [Qingdao] berthing facilities improved but traders under pressure to use Japanese ships. Hongkong. Record trade figures despite Japanese occupation of Kwangtung. The Past Year in Japan. Prince Konoye explains the National Movement for Assisting the Throne. Survey of economic conditions, budget figures, prices, productivity, foreign trade statistics. Work of the Committee. Closure of the Burma road, financial help to China, changes in the administration of the International Settlement at Shanghai. Chinese Engineering Apprenticeships. Universities China Committee. Appendix. America Ready to Fight. President Roosevelt's Broadcast on May 27th 1941 Japan's Treaty with Wang Ching-Wei. The Tokyo Talks, Chinese Silver Deposits.
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