No.172

(F 1433/60/10)

Sir,

FOREIGN OFICE, 8.V.1.

6th March, 1935.

315

I transmit to you herewith a copy of correspondence

which has been exchanged between this Department and the

(3) Colonial Office as a result of your despatch No.52 of the 18th

2)

January last, on the subject of the passage of arms through

Hong Kong in transit from the United States to China.

2.

The proposal put forward by the Governor of Hong

4) Kong in the despatch which forms an enclosure to the Colonial

Office letter, appears to provide an effective means of checking

the abuses set out in the note from the State Department which

was enclosed in your despatch under reference.

3. I shall, therefore, be glad if Your Excellency will

state in reply to the State Department that the Government of

Hong Kong are fully alive to the existence of the loophole

pointed out by the United States Government and that they are

willing to cooperate with a view to closing it. If they might

be furnished with copies of all licences or other forms or

authorization issued in respect of export of arms to Hong

Kong, the Hong Kong Government would, in those cases where

Hong Kong is indicated as the port of ultimate destination,

refuse to allow re-export to China without the production of

a Contral Government "huchao". It would not, however, be

practical to require, as evidence that goods are in transit,

His Excellency

The Right Honourable

Sir Ronald Lindsay, G.C.M.G., K.C.B.,

etc..

etc.,

etc..

Washington.

a/

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