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2.
Counsellor in the light of Foreign Office telegrams los.285
and 286 to Nanking and of paragraph 13 (traffic in arms) of Canton intelligence report for half year ending March 1937.
5. From the first sentence of telegram No.286 policy
of that committee appears identical to policy of local French authorities but intelligence report suggests that Hongkong Government has formulated a policy (at least as regards
British section of Canton-Kowloon railway) which is no
longer one of laissez-faire.
6. It seems important that position should be clarified and that you should know if there has been any change in policy since date of telegram No.286. From archives here there
has been no change and you may wish to take up the question with the Foreign Office. In that case would you also consider
suggestion in third paragraph of above?
7. In view of steps taken by Chinese Government to block various rivers in China and endeavours now being made by British shipping companies to circumvent these barriers attitude of Japanese Government towards possibility of carriage of arms by such routes assumes a particular importance and seems to call for consideration equally with the question of transit through Hongkong.
8. This telegram is drafted in full agreement with
Acting Commercial Counsellor.
Addressed to Foreign Office No.725, repeated to
Hongkong.