Correspondence on the continuing anti-foreign demonstrations; Foreign Office and Cabinet policy on defence of the Concessions in China; preparations for the defence and evacuation of the Concessions, hampered by the lack of a nearby strategic base and the refusal of the Japanese to send troops; control of labour disputes in Hong Kong and Canton; proposal to establish an aerodrome at Kai Tak; negotiations over the future administration of the British Concession at Hankow; Clementi's proposal to annexe the New Territories and pursue an aggressive policy towards China.

Correspondents include L.S. Amery, Sir Miles Lampson, O'Malley, and the Consul Generals at Canton and Shanghai.