13702/33.

Sir.

**June

135 3

I am directed by Secretary Sir Philip

Cunliffe-Lister to refer to your letter lo.F.3030/160/10

of the 11th Kay and subsequent correspondence regarding

the proposed purchase by the Canton authorities of

arms and armunition from Australian Army Stores, and

to say that, although the particular transaction which formed the subject of this correspondence appears to

have fallen through, he would nevertheless be glad to

learn the precise rounds on which Jecretary Sir John

Simon holds that the barcelona Convention "expressly

excludes the export and import of armas from the scope

of the Convention." In this connection attention is

drawn to the penultimate paragraph of the Board of

Trade latter, No.3711/31 of the 14th September, 1932,

a copy of which was sent to the Foreien Office.

2. Article 5 of the Statute on Freedom of

Transit makes it clear that no Contracting State is

THE UNDER SORTARY OF STATE,

FORZION OFFICE.

bound

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