87
German firm.
·2-
German agent has given me particulars and
stated that he can import these from Scandinavian
countries by a Norwegian ship provided shipment will
not be stopped by British and he asked attitude of His
Majesty's Government in view of anti-Communist move-
ment. He also wished to insure with a British company.
I could only reply that provided that the ship did not
enter British waters, consignment was not likely to be
stopped. As it is difficult to avoid British ports
this is unsatisfactory and risk of seizure makes trans-
actions unattractive except at high price. In the
present circumstances can I give assurance that con-
sigment for Li Chal-sun will not be seized ell route
and authorise British insurance company to cover risk?
Canton naval authorities also wish to order from
Arnhold and Company eight motor boats with Thornicroft
engines and wireless for pirate prevention and have
offered attractive terms for payment. I have to la
agent that there is no objection provided that no
armement is supplied but if you do not approve please
telegraph immediately as the matter is urgent.
Anti-foreign movement was not contemplated when
arms agreement was concluded. Letter like all co-
operative schemes in China has proved a sorry farce
from British point of view and is now definitely
dangerous to our interests.
We cannot afford to discard
any political weapon in present struggle and should use
our control of arms trade especially in Hongkong to our
own advantage.
Addressed to Foreign Office No. 32.
Repeated to Peking wo, 45 and longkong.