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It might also be desirable to insert some reference to the
need for the Chinese Embassy to arrange with the Export
Licensing Department for exporters' applications to that
Department to be accompanied by documentary evidence that the
orders are for the Chinese Government. Possibly, however,
such evidence is automatically present under the export credit
machinery. The arrangements suggested to the French Embassy
are that they should supply the firms to whom they give orders
either with a duplicate copy stamped by the Embassy of the
authorisation from the appropriate Supply or Service Department,
or else with a certificate signed by the Embassy stating that
the order is for the French Government, and that the competent
Department here has been consulted (giving their reference number),
or has not been consulted.
Quite recently Lord Riverdale asked Overton whether he
could give any idea of what would be the position of the
Sheffield manufacturers of certain special steels who had
received orders from the Chinese Government. The steels
required were of a special kind, and if the manufacturers
covered their raw material requirements, they were afraid either
that the Supply Department might prevent them completing the
order and require them to carry out other work which did not
require those materials, or else that owing to the danger of
interception export licences for the finished products might be
refused. Lord Riverdale has as yet had only a non-committal
reply.
I am sending a copy of this letter to Bewley, Wilkinson
(Supply), Bankes-Amery, Stirling (M.E.W.), Bard (Air Ministry),
Rear Admiral Taylor (Admiralty) and to T.A. Smith (War Office), so
that we can settle this question at the next meeting of the
Export Licensing Committee, (to-morrow at 5.30 p.m. at the
Board of Trade).
Yours sincerely,
(Sgd) R.J. SHACKLE.
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