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equally useful for civil or military purposes, and from

the point of view of our own defence requirements there

was no case for stopping their export on the ground that

we needed them ourselves.

Considerable doubts were expressed as to

whether the fact that there had been no declaration of war

was sufficient, in present circumstances, to justify a

continuance of the exportation of arms, particularly in

view of the strong public opinion against Japan.

The Secretary of State for Foreign Affairs

pointed out that he had used the phrase for the reason that

it was the test for raising the question of action under

Article 16 of the Covenant and for the application of the

Neutrality Law in the United States of America.

The Cabinet were reminded that the amounts of

British arms which could be spared for China would be

very small, but that the fact of sending them might raise

large issues the consequences of which might react on China.

At the moment the main issue on the arms question revolved

round Hong Kong, which was suspected by Japan as being used

as a centre for the distribution into China of arms and

war material from abroad. If the issue were forced through

the despatch of arms from this country to China, Japan

might raise awkward questions over the position both of

Hong Kong and of the Kowloon-Canton Railway.

The Secretary of State for the Colonies said

that the Colonial Office were keeping in close touch with

the

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