4498

[This Document is the Property of His Britannic Majesty's Government, and should be returned to the Foreign Office if not required for official use.]

(F.8797/1.30/10).

ΤΟ

CHINA.

Cypher telegram to Mr. Howe (Nanking).

Foreign Office.

No.438.

3rd November, 1937.

5.00 p.m.

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64

IMMEDIATE.

Your telegram No.603 (of the 22nd October; supply of

arms to China via Eurma].

1. My two immediately following telegrams repeat tele-

grams on this subject between the secretary of State for Burma

and the Governor of Durma.

2. His Majesty's Government and the Government of Burma welcome in principle the establishment of direct road connexion

between Eurma and China, and you may so inform the Chinese

Government. Actual route must depend on latter's decision,

but for the immediate purpose the route from railhead at

Lashio via huse and lungling to connect with the motor road

between Yunnanfu and biakwan would seem most suitable.

On a

longer view route via Kunlong would perhaps be more advantageous;

this would, however, raise question of territorial rights in

Hopang salient.

3.

Government of urma could not incur any considerable outlay on improving existing raods or on new construction

without being assured that trade in arms (and other goods)

would produce enough in transit charges to make it a reasonable

proposition and that these charges would be promptly paid.

Addressed to Nanking No.438; repeated to Peking No.506,

Yunnanfu No.5 and Burma No.177.

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