See end 2

In 15074/26

77

Agreement. I am, moreover, to invite

Sir Austen Chamberlain's attention to

the fact that provision already exists

for authorising supplies of arms in

special cases, notwithstanding the terms

of the China Arms Embargo Agreement,

since the King's Regulations made in

1919 in pursuance of the Agreement

cont in the following reservation -

"Nothing in these Regulations shall

be deemed to prohibit any transaction

authorised by a written license gran ted

by H.M.Minister."

7B.

morcover

Mr. Amery is, therefore, of

the opinion that the supply of arms

in this manner need not be considered

to involve a departure from H.M.G.'s

policy of neutrality towards the

con tending factions. General Li-Chai-

Summo is understood to have been in

control of Canton for some months,

and

appears now to have succeeded in

consolidating his position there.

The re

is no question, therefore, of assisting

him

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