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destined directly or indirectly for the manufacture of arms or munitions of war, arsenal equipment and personnel to supervise or assist in the use or manufacture of such arms and munitions and the training of such personnel. A wider formula may apparently meet with objection from your Netherlands colleague on the grounds of existing legislation in Holland, but I trust that if necessary this legislation could be amended. M. Starkenborgh, secretary-general to the Netherlands delegation, informed Mr. Lampson verbally at Washington on the 27th January that in his opinion the Netherlands would hardly be able to stand out of a general arms embargo policy, nor, indeed, did he suppose that they would wish to do so.
Enquiries are being made of the Admiralty and War Office as to whether they can suggest a practical definition of the articles to which it would be advisable that the embargo should be extended, and the result will be communicated to you by telegraph if likely to be of assistance in the discussions to be held in Peking.
The question of including aircraft in the embargo is no doubt one of some delicacy in view of the aircraft supplied by Messrs. Vickers, but it is understood that deliveries under this contract have now been completed.
These machines, which were not armed, were sold to the Chinese Government under a definite assurance that they would not be used for military purposes, and the Chinese do not in fact appear to have succeeded, despite their attempts, in using them for military purposes to any appreciable extent. But, apart from this aspect of the question, it is undesirable on financial grounds that the Chinese Government <hould devote their resources to the purchase of aircraft when so many more pressing economic needs remain unsatisfied and so many debts are outstanding. You will recollect that for these reasons, and in view of our consortium policy, which was adopted subsequent to the conclusion of the Vickers contract, His Majesty's Government refused to countenance the fulfilment of a contract concluded by Messrs. Handley Page.
The circumstances of the Vickers contract were explained to the other Powers at the time, and in initiating the suggestion that the embargo should include "aircraft there could be no question of bad faith on the part of His Majesty's Government.
However, while it seems desirable that aircraft should be included in the embargo, I agree that it may be better in all the circumstances that the suggestion should be initiated by some other Power.
The policy of restricting or preventing the import of aircraft into China is, in fact. already being adopted by the Canadian Government, as shown in the correspondence sent to you in my despatch No. 993 of the 19th October, I have recently learnt that it is also being adopted by the Australian Government, who have issued instructions to Australian collectors of customs to detain all shipments of aircraft to China pending decision on the merits of each individual case; and it has evidently been adopted by the Colonial Government of Hong Kong in the case of the two American airplanes detained in that colony en route to Canton. I regret to learn from your despatch No. 14 of the 18th January that these two machines have successfully evaded the refusal to release them by shipment to Manila and back to Canton, but I trust that recent American legislation may close this loophole for the entry of arms and munitions of war into China.
For the same reasons it seems desirable that the embargo should extend to personnel to supervise, or assist in, the use of aircraft and the training of such personnel, including the training of Chinese officers in the Royal Air Force training schools, which has formed the subject of correspondence terminating with your telegram No. 53 of the 11th February.
The Governments whose names were included in the notification made by the doyen of the Diplomatic Body at Peking to the Chinese Government on the 5th May, 1919, as having agreed to an arms embargo, or who subsequently adhered to the arrangement, are: Great Britain, Belgium, Brazil, Denmark, France, Italy. Japan, the Netherlands. Portugal, Russia, Spain and the United States. Of these, Belgium, the Netherlands, Japan and the United States have already signified their readiness to reaffirm the embargo in the form of Earl Balfour's draft resolution, provided the Italian reservation regarding contracts already concluded prior to the original imposition of the embargo is withdrawn. The Japanese Minister at Peking appears anxious to go further and strengthen the embargo, while the United States seem ready to do so if we will indicate the formula, and have just passed a special resolution of Congress giving the President wider powers to regulate the export of arms to countries in which the United States exercises extra-territorial jurisdiction.
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A copy of this resolution is enclosed.* as well as copy of a proclamationt issued by the President thereunder announcing the application of the resolution to China.
I am now approaching the Governments who were parties to the former embargo, with the exception, of course, of Russia, with a view to the issue of instructions to their representatives in Peking to discuss the framing of a recommendation as to the best means of putting the embargo on a more satisfactory footing.
The Governments of Germany and Austria are not parties to the existing embargo agreed on in 1919, but of course they are precluded by the Treaties of Peace from supplying arms, and in any case cannot exercise jurisdiction over their nationals in China. I agree, however, that it would be advantageous, if not essential, in view of the German Government's connection with the trade in arsenal equipment, to obtain their co-operation in making the embargo effective, and I am approaching these two Governments with a view to associating then, as far as possible, with any joint action of the kind contemplated.
Lastly, it seems highly desirable that the Chinese Government should be induced to co-operate, or at least to acquiesce in the embargo, since Chinese citizens might otherwise circumvent it to a certain extent, either by direct importation or with the assistance of the nationals of those Powers not parties thereto, or of foreign nationals in China over whom the Chinese Government themselves have jurisdiction.
CURZON OF KEDLESTON.
I am, &c.
Enclosure 1 in No. 1.
Memorandum by Foreign Office Section of British Empire Delegation (Washington) respecting the Arms Embargo in China. (Confidential.) (B.E.D.-178.)
PRACTICALLY since the revolution of 1911, China has been in a state of intermittent civil war. At first, the Republicans were fighting the Imperialists; then the North was fighting the South; and now a stage has been reached when military chieftains throughout the various provinces wage war against each other. It was in order to discourage this warfare, by preventing the supply of arms and ammunition from abroad, that the arms embargo policy was initiated.
From 1911 onwards, it had been a well-known fact that the warring factions in China bad obtained large supplies of munitions from abroad, generally from Japan. This feeding of civil strife became increasingly evident towards the close of the European war. Japan advanced important sums to the Peking Government at that time, .g., the so-called War Participation Loan, of 20.000,000 yen (2.500,0001.); and large contracts for the supply of munitions were placed with Japanese firms.
This state of affairs came to an end with the fall of the Terauchi Ministry in the autumn of 1918. The new Japanese Premier, Mr. Hara, at once stated that his attitude towards China would be one of non-interference in her internal affairs, and a discontinuance of his predecessor's loan policy.
It was under these circumstances that the arms embargo came into being. It was realised that the end of the European war would find the world encumbered with vast stores of surplus munitions, and that many of these would find a ready market in China, where they would only serve to perpetuate civil war. It was realised also that if one country refrained from supplying arms to China, the opportunity would at once be seized by some other country, unless an international policy of self-denial could be successfully invoked.
Accordingly, on the 5th May, 1919, the doven of the Diplomatic Body at Peking made the following notification to the Chinese Government-
The Governments of Great Britain, Spain, Portugal, the United States, Russia, Brazil, France and Japan have agreed effectively to restrain their subjects and citizens from exporting to or importing into China arms and munitions of war and material destined exclusively for their manufacture until the establishment of a Government whose authority is recognised throughout the whole country, and also to prohibit during the above period the delivery of arms and munitions for which contracts have already been made but not executed.'
+ March 21, Section 2.
* March 10, Section 2.
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