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Aircraft.

33. Unarmed aircraft and aircraft engines would not fall

within the scope of the system of export licences if it were

not for the thiopian Arms Traffic Treaty of 1930 (see

paragraph 11), which required every consignment of aircraft

and aircraft engines to Abyssinia to be specifically licensed.

But the Air kinistry have had for many years a working

arrangement with the manufacturers who supply aircraft and

engines for the R.A.F, under which the consent of the Ministry

is obtained before foreign orders for aircraft and engines

are accepted and that Department consults the Foreign office

where considerations of foreign policy appear to be involved.

A note on the Air Ministry action regarding export by the

trade of aircraft, aero engines and armament is attached as

Annex I. The draft Arms Traffic Convention now under

consideration by the League of Nations provides for the

licensing, on export, of all aircraft whether military or

civil, and also aircraft engines, as well as certain definitc

component parts of aircraft. If the Convention is brought

into operation effect will of course be given to this

provision.

Licences issued and refused.

34. A statistical statement is attached (Annex H) which

shows the number of arms export licences issued and the

number of applications for licences to export war material

refused in each year since 1929.

35. The number of licences refused is small but this is to

be expected as the suppliers well know the position and

accordingly ao not apply for licences where they know they

will not be granted. Apart from this the vice Departments

have a close understanding with the manufacturers, which

enables them effectively to control the export of arms which

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