5

It will be appreciated that any policy of

providing direct Government assistance raises much

larger issues than those involved in withdrawal from

the Embargo Agreement. It would obviously be

impossible for us to supply arms to any authority

in China who asked for them, whatever their political

complexion or degree of stability; hence we should

have to restrict supply to those whom we regard as

our friends. We should, therefore, have to abandon

our established policy of neutrality towards the

contending factions, and would have to justify our-

embarking on

selves in direct interference in Chinese affairs.

It is true that Japan has, from time to time, given

direct or indirect assistance to Chang-Tso-Lin,

while the French in addition to subsidising the

Governor of Yunnan are believed to have given

material assistance to the Northerners;

considerations exist in both these cases, and it

seems doubtful whether it would be wise for us to

abandon in the present fluctuating situation our

much vaunted attitude of neutrality and to swop

horses in mid stream.

but special

I suggest that we should now discuss with

the Foreign Office with a view to ascertaining what

Sir M. Lampson's and My Brenn's views are

these proposals, and what likelihood there is of

the Foreign Office being prepared to back them.

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