19
(41) in 33740.
but se
barn 2 9 N! Z
Hong Kong Government undertaking, should these
documents indicate Hong Kong as the port of ultimate
destination, to refuse to allow re-export to China without the production of a Central Government
huchao.
This suggestion was passed on to the
United States Government, who have replied that they view the suggestion with favour, but before acting
upon it, would like to be assured that, to avoid discrimination against American arms exporters, a
similar arrangement will obtain in respect of
British and other exporters.
The suggestion can, however, only be
adopted if the exporting country has a system of export control by licence (which Belgium has not),
and if the exporting country is willing to co-operate
with the Hong Kong Government in this way to make
the closing of the loophole effective.
We might reply to (67) that the Secretary
of State does not anticipate any objection on the
part of the Hong Kong Government to the extension
to other countries, including Great Britain, of the
system proposed in the case of the export of arms
from the United States to or through Hong Kong.
As the Foreign Office are no doubt aware, copies of
licences for the export of arms and war material to
China issued by the Board of Trade are already
forwarded as a matter of routine to the Govemor of
Hong Kong, though, so far as the Secretary of State
is aware, no arrangements have been made for this
practice to be employed as a means of checking
whether the information as to the port of ultimate
destination given to the Government of Hong Kong
to the Boana I Trade
and of the country authorising the export is
consistent.
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