Qui
247
21.
1st September, 1937.
14-
b
Dear Cowell,
With reference to your letter of 31st August (53548/37),
enclosing a letter from Matheson and Company as to the supply
of arms to China, we agree that there is no useful advice that
can be given to the firm at the moment. We are holding a
meeting with representatives of the shipowners' associations to
find out how British shipping is faring in the present disturbed
conditions and to see if the shipowners have any proposals to
make in view of possible developments such as the exercise of
belligerent rights by Japan. The results of this meeting will
be taken into account in considering the suggestions that have
been put forward for saving British ships from being stopped and
searched for contraband, and as you know, those suggestions
include a proposal that the export of arms from Hong Kong to
China might be prohibited.
As to the merits of this proposal,
we have nothing to add for the moment to the letter which I
wrote to you on the 28th August (on which you will now have seer.
Pratt's comments).
H.R.Cowell, Esq., C.M.G.
But even if it is decided to recommend to Ministers a