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apparently not view favourably any embargo on

the export of munitions to China. I am

inclined to think that merely from the point

of view of the Colony's interests it would in

the long run be more disastrous than the

temporary destruction of the railway.

Like the Foreign Office, I am not

clear as to the significance of the suggestion

that the 0.A.G. shoula furnish the Japanese

Consul with statistics of the volume of traffic

on the railway. If such information would have

have any effect in making the Japanese more

hesitant in carrying out their threat to destroy

the railway then it appears a harmless method

and of some use. I think, however, we should

make it clear to the 0.A.G. what our policy is,

and that either we must submit to the Japanese

threat and impose an embargo, or that no partial

steps such as forbidding the use of British

rolling stock for the conveyance of munitions

should be allowed. In view of our present

policy I am inclined to think that the 0.A.G's

action reported in No.88 is mistaken and that

it would be advisable to allow the use of British

rolling stock for the purposes mentioned.

? Acknowledge 90 and refer to 88,

saying that the significance of the Acting

Governor's suggestion is not apparent to us

either, and that we are asking for further

Say that it appears to us that

information.

it is open to objection to forbid the use of

British rolling stock for the purposes

mentioned and that we should be glad to have

obre Nations

their vic

on this and to know whether they

think

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