F 5794/7/10
54
FOREIGN OFFICE, S..1.
7th November, 1936.
sir,
I am directed by Mr. Secretary Eden to refer to Board of Trade letter No.C. R. 2.1152/36 of the 5th May last, regarding the export of arms to China, and to transmit herewith copies of tho despatches (together with their enclosures) which he has received from His Majesty's Embassy in Washington.
2. I am to express regret at the delay in replying to your letter of 5th May. The delay was due to the fact that renewed prospects of civil war made it peculiarly difficult to take the action suggested in your letter, while the situation was also unfavourable for the alternative policy of making a renewed attempt to induce other countries to enforce regulations in conformity with the regulations of
the Chinese Government.
3. The Board will appreciate that the recent cstablishment of Central Government authority in the South best provinces of China cannot but restrict the market for arms to be imported in contravention of the Central Government regulations. In fact, the benefit to British exporters of the relaxation of the restrictions at present imposed would now appear to be slight. It is also, perhaps, pertinent to ask whether exporters would be able to take full advantage of any additional orders that they might obtain, having regard to the difficulty that they not infrequently experience in fulfilling legitimate orders. Hr. Eden would therefore suggest that in present circumstances the benefits accruing to United Kingdom manufacturers from
a relaxation of the existing restrictions could not be held to outweigh the political objections to such a stop. Relaxation, even if justified by substantial benefit to United Kingdom interests, could hardly fail to provoke parliamentary criticism in this country. More important to Mr.
The Secretary
to the Board of Trade.
Eden's
...