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opinion was that Foreign orders, e.g. for China, should
be met if they did not interfere in any way with our
re-armament programme.
MR. HORE-BELISHA pointed out that, whilst it
might be considered a major British interest to assist
China by the supply of armaments, there was a priority
list in which China was placed eighteenth, whereas Egypt
was placed first. If sufficient importance was attached
to supplying armaments to China then her position on the
priority list should presumably be advanced.
SIR MAURICE HANKEY said he hoped that the Sub-
Committee would not overlook the point that, if we
refused to supply armaments to a country which was in
difficulties, such action would preclude our chances of
getting future orders from them. The time was approaching
when, according to our own re-armaments programme, orders
would lessen and foreign orders would be all the more
If we
required if we were to maintain our war potential.
accepted orders from foreign countries in normal times,
but, for potential reasons, refused supply in times of
stress, we would find that orders would not be forthcoming
in future.
MR. EDEN said he did not suggest discriminatory
He would arrange to have the question of the
legal position regarding the sale of surplus stocks
action.
considered,