Appendix No. 4

The Policies Formulated by Japanese Navy Authorities on 8 July 1937

1. Measures will be taken to have the Third Fleet, which is now engaged in joint Army-Navy maneuvers in the Formosan area, suspend its basic exercises and return to its original station.

2. The Navy will prepare against expansion of the Incident throughout the whole of China. Importance is attached for the time being to guarding the Tsingtao area. Utmost caution will be exercised to avoid actions which are liable to provoke Chinese authorities.

3. Emergency reinforcement units will be organized and kept ready in order to cope with any future eventuality in China.

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