7

19. Gby Peking Tel. 175 of 2-3

20. F.O.

13.3.24

Propred instructions to 514 1.6..

Sechs C.O. Concurrence.

21. Lee Ion P. 2. File

(clayed for collection of 1922 ph.)

We have always been opposed to the

China Arms Embargo;

Hong Kong have opposed it

because it is primari

interest of Hong

a

s/primary

Kong that there should be a stable and friendly

government in Canton.

The Government of

Canton cannot be stable if it cannot get arms to

maintain itself, and it will not be friendly if

we prevent it obtaining those arms. Hong Kong

therefore has always itched to supply arms to

any Cantonese government likely to be friendly

towards them.

If the embargo is abandoned

the position will be that British nationals will

be able to supply arms to the recognised authorities

in China, and in the present state of affairs

that means that we shall be able to supply the

Cantonese Government, which, although owing a

nominal allegiance to Nanking, is, in practice,

Difficulties may, of course,

semi-independent.

arise if there is an open split between Nanking and

the Kuang si group, which controls Canton and Wuhan.

If that should happen we should presumably, having

recognised the Nanking Government, have to treat

Canton as a rebel government. However, despite

many rumours, the split has not taken place yet,

and we must hope that the differences between the

various factions will be removed without a conflict.

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