18
87.
F.o.
૬૪.
F. 7531/130/10
( his copy of til from Lokys.
(two
0.A.G.
Has forbidden conveijance of
89. Mathesons
9o. Fo.
une
tel. 222
ने
7.10
10.37.
500
of 7/10.
7.10.37
of British rolling stock for
munitions over
Chinese section.
of rly,
7.10.
9.57.
war materialo to
Ciupply of
your.)
thinks
F
7882/120/10 Lokyo,
(to copy of vel to
8.10.3
10.37.
275-
x of 71/10.)
87, 88 and 90.
It is clear that the Japanese will press
strongly their effort to force an embargo on the
export of munitions to China from Hong Kong, or in
the absence of such an embargo that they may then
take the extreme step of aestroying the Canton-
Kowloon railway. The seriousness of such a step to
the interests of the Colony is obvious, and from a
short view appears disastrous, since the whole of
the rail-borne traffic between the Colony and China
would be cut off.
question
The
now appears to be
whether we should submit to the Japanese threat,
which may or may not be bluff, and impose an embargo,
or whether it would not in the long run be more in
the interests both of the Colony and of Britisa trade
in China to maintain the export of munitions and
submit with what grace we can to the destruction of
the railway. This is scarcely a matter for
Departmental decision, and in any event the rising
tide of public opinion in this country would
apparently