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Eden's mind are the considerations of foreign policy involved. The Chinese Govenmont, it is true, could not as formenly represent relation as intervention in favour of the South-West Political Council; they might, however, be disposed to se in it an encouragement to such separatist elements as may still persist or may be tempted to show themselves in the future. Again, the Japanese Government might regard any increase in the facilities for the export of munitions of war from this country to China as evidence of a desire to take sides in Sino- Japanese differences by enabling alleged anti-Japanese organisations to obtain arms. It may also be pointed out that the United States Government have displayed considerable interest in this question and that relaxation of our own restrictions at a moment when, as ill be observed from the State Department's note of the 29th June, they are suggesting a further approach to other Governments, might provoke an adverse reaction.
4. In view of the considerations set forth above, Mr. Eden hopes that the Board will not press for any modification of the existing procedure. On the other hand the Board may feel that in spite of the recent change in the internal situation in China it remains desirable that the Chinese Government's regulations should be observed by exporters in all arms-manufacturing countries.. As the Board will recall, the present position is that the Governments of France, Belgium and Switzerland do not profess to secure this observance that no approach has been made to the German Government and that, although the Czechoslovak Government have stated that they require compliance with the Chinese regulations, exports of arms have in fact taken place from that country without the necessary Central Government Huchro. In Mr. Eden's vicw the present time is propitious for a further attempt to secure the adoption of a uniform practice should the Board so desire.. Recent events will have greatly reduced the market
for