GRAY
                                   TOKYO VIA SHANGHAI & N.R.
                                   Dated September 6, 1939
                                   Rec'd 9:30 a.m., 7th
 
Secretary of State,
     Washington.
     
     480, Septembre 6, 7 p.m.
     Our 459, September 6, 5 p.m.
     
     The British Ambassador's telegram to London is as fol-
lows:
 
     "After consultation with my French and United States 
colleagues I suggest for your consideration that replies 
should be on the following lines:
     (1) We take this statement as meaning that Japanese 
Government intend to adopt a neutral attitude in relation 
to the conflict in Europe.
     (2) We are unable to see why outbreak of hostilities 
in Europe should increase the difficulties between the 
Japanese and ourselves in China.  We wish to avoid incidents 
but we see no reason for the Japanese proposal for the with-
drawal of our troops and warships and are at a loss to 
understand it because we intend to retain our troops and 
ships in the Far East so long as they are required for the
defense of British interests.
                                                                               (3)