One of the characteristics of British Imperialism 1688-2000 written by PJ. Cain and A.G. Hopkins is the emphasis put on China as an area in which the working of British imperial policy propelled by gentlemanly capitalism was clearly discerned.1
Given the important place of China in the imperialist world order, this is a rewarding exercise, and the function of British financial interests in China is convincingly borne out in their work.
In the case of the 1930s, which is the period discussed in this chapter, they stress the continuity of British policy towards China: 'The main issues, as in the 1920s, were financial, and centred on securing payments on existing debts and creating the conditions for new invest- ment.'2 And they point out that 'the most ambitious reform was the attempt to draw China into the emerging Sterling Area after Britain left the gold standard in 1931'.3Accepting the validity of this assertion, the present author thinks that the analysis of British policy towards China in the 1930s in British Imperialism 1688-2000 is not sufficiently supported by the argument about the wider international setting in east Asia, particularly British relations with Japan. It is true that Cain and Hopkins are well aware of the importance of examining British policy towards China in the context of British foreign policy in general, but their treatment of various factors surrounding Anglo-Chinese relations is, albeit inevitable in such a gigantic undertaking, rather sketchy. Though in his response to Shigeru Akita's criticism Peter Cain touches upon British appeasement policy towards Japan and develops some interesting points, he does not go into details.4 Given the fact that international relations in east Asia underwent great changes after the start of the Japanese invasion of north-eastern China (Manchuria) in 1931, the analysis of the British position in and policy towards China should be supplemented by that of British policy towards Japan. The aim of this chapter is to outline the British stance in east Asia from 1931 to 1937, when the Sino-Japanese war broke out, with the emphasis on its relations with Japan.5
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