(in Ammo Trappies file)

To CHINA.

232

36

(F 6262/130/10

Cypher telegram to Mr. Gage (Nanking)

Foreign Office, 11th September 1937, 6.05 p.m.

No. 286.

70 30/1/37

General.

Your telegrams Nos. 417 (of August 30th) and 421

(of September 6th; position of Hongkong as entrepot for

supply of arms).

Arms traffic through Hongkong is of course perfectly

legitimate and up to now no decision has been taken by His

Majesty's Government to vary the normal procedure under

which it is conducted. It is however obvious that if this

traffic continues and grows in volume Japan might not be

content to restrict counter measures to present blockade

of Chinese shipping, but might very probably begin exercis-

ing belligerent rights. The situation that would then arise

is set out in my immediately succeeding telegram which is

repetition of telegram No. 152 sent by Colonial Office to

Governor of Hongkong on September 2nd. It will be

apparent that Japan would effectively stop the import of

munitions into China either direct or via Hongkong and that

China could only alter this by wresting the command of the

sea from Japan.

2. You may at your discretion use the material here

provided to dispel any doubts that responsible Chinese may

feel as to the correct and friendly nature of our attitude.

Addressed to Nanking No. 286, repeated to Hongkong

unnumbered, Peking No. 369, Commander in Chief unnumbered

and Shanghai No. 142.

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