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Show LONDON DRAFTS IIOTETOBERLIN LONDON. May 1 OTP) Foreign offio mperts have completed the preliminary draft of a not to Gr- Adotf Hitler based hi denunciation of th Brttish-Oermaa naval limitation limi-tation pact, but leaving the way open (or further discussion, it was understood today. At tbs nam tint tb govrnmnt prepared to meat Japanese threats to British Interests la China by expanding ex-panding Its present far eastern policy from on of financial assistance assist-ance to China to one of active resistance re-sistance to Japan. Cualder realities It was understood that the government gov-ernment was prepared if necessary to us economic measures to combat com-bat Japanese encroachment on British interests. The note to be aent to Germany repliee to Germany's denunciation note of April 3d. This note: 1 accused Britain of moving away from the policy of guaranteeing friendly development of relations with Germany; a surfeited sur-feited that Prims Minister Neville Chamberlain bad abandoned th spirit f th declaration he mad jointly with Hitler at th Munich eonfei isl, aspi easing the destr of both countries never to wags war upon each other, and (S) Implied that Britain had trespassed upon Germany's sphere of Influence in central and eastern Europe. T Refute Charge Th British reply I to contain a concise refutation of these charges and outline Britain's own case, thus inviting further comments from the Gorman government provided it want to seek restoration of more nearly normal relations. It was apparent that with Its security front noaring completion, the government waa ready to act firmly in defending Hs Chinese interests aarainst Jaoan. Cabinet leaders were considering th dispatch of a nots to Japan, Its exact contents to depend on developments de-velopments within the next few days along th Chine coast May Retaliate It was undsrstood that if Japan proceeded with Interfering with British shipping along th China coast and continued to press demands de-mands for transfer of control to Japan of international areas in China, ths government waa prepared pre-pared to take economie measures assuming th character of minor penalties. British government legal experts have been instructed to examine several alternative means f economic eco-nomic resistance. |