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Government is still unable to report any progress.

Our information from Brussels, which is also

rather more promising than that received by the French, leads us to think that if only the Swiss could carry into effect the measures indicated in paragraph 3 of the enclosure to your despatch No. 137, we should be in a strong position to go to Brussels and press for positive

action there too.

Your letter just received, and referred to in

paragraph 1 above, indicates that the Swise might well be ready with a law by December next, conceivably before then. This is satisfactory as far as it goes, and we should like to be informed of M. de Stoutz's further observations on your suggestion.

Swiss share of the Far East arms traffic is small, but the real point is the one which you emphasised, that if one nation stands out the others use this fact as an excuse

We realise that the

for doing the same.

37.7

(sa,) C. W. Orde.

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