81
10. In short, it appears to Mr.
Amery that the adoption of the Govr.'s
proposal in the form suggested above,
would not constitute a breach of the
China Arms Embargo Agreement, would not
involve a reversal of the established
policy of neutrality in China, and
even if known ikum
/would not be objected to by other
Powers, at least two of which follow
the same principle.
Moreover, the
proposal can scarcely be distinguished
in principle from the concessions
already granted to a Northern General.
In view of these considerations, and of
the importance to Hong Kong of pre-
serving harmonious relations with
Canton, 1 am to commend the proposal
to Sir Austen Chamberlain's favourable
consideration.
10.
A copy of this letter is being
sent to the Admiralty, War Office, Air
Ministry and Committee of Imperial
Defence.
I am,
etc.,
(sd) G. Grindle
I