No. 1632.

(F 5578/60/10)

Sir,

FOREIGN OFFICE, Dom. le

177

2nd Sentember, 1938.

Your Excellency will have observed from the corresponden

enclosed in my desnatch No. 1201 of the 24th June last that His Majesty's Government have had under consideration

the desirability of controlling more strictly the massage

of arms through Hong Kong to China. Cases have occurred whop-

exporters have obtaiıed licences for the export of arms on

the representation that they were destined for Hong Kong,

and where the Hong Kong agent has subsequently obtained for

these arma transit frollities for China, by producing a

contract with the Chinese importers for the sunly of the

same poodo. It is obvious that such a practice constitutėg or

evasion for which His Majesty's Government cannot assume

responsibility of the Chinese Government's regulations whe

Deleted at letephonic

request I 4.0. have been nosented by the government to which you URB

this coushtutes the aggreditoÄ.

difference

veturen

the desp

15 Paris

16 home etc. (Amend also made .copy seat HK.) sear16HK.)

in

The majority of cases, so far as is known, have

occurred in connexion with exnarts from the limited staten,

and the nited States Government have eroresved their desir

to cooperate with the Governor or Hong Kong in closing the

lonhole.

3. It has in consequence now been decided that, in the

care of arms exnortec from those countries which have adontid

the licence system, "in transit" Tacilities will only be

granted in Hong Kong anon production of a cony of the exor:

licence issued. The United States Government have indicated.

that they are prepared provisionally to accept thi: measure

[18 Excelleney

The Right Honourable

fir George Clerk, Giao ho lo to đ

C. B.

etc.,

etc., Paris.

etc.,

02

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