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CYPHER TELEGRAM from the Officer Administering

the

Seever th

Government of Hong Kong, to the Secretary of State for

the Colonies,

Dated 30.8.37. Received 10,38 a.m. 30.8.37.

14

No.163 Secret.

Addressed to the Secretary of State for the Colonies

telegram No.163 of the 29th August repeated to Nanking

Commander in Chief.

You may shortly receive applications from Matheson

? and Co., London through the Foreign Office for considerable

shipments of tanke, aeroplanes and other munitions ordered by

Nanking Government for delivery to Canton through Hong Kong.

No objections from strictly Colonial point of view but questions

of principle arise slightly different from diversions of Tientain

or Shanghai cargo to Canton hitherto sanctioned by the Ambassador.

Though this is question of diplomacy I venture the

opinion that suggested embargo on re-exportation by Colonial

legislative action is undesirable for the following reasons:-

Firstly: such re-provisioning can now hardly arrive

in time to affect serious Shanghai situation.

Secondly: internal communications only to Canton are

ao rudimentary that Japan could sever this connexion without

difficulty if necessary.

?

Thirdly: inclusion of Japan as destination in suggested

enbergo would delude no-one.

Fourthly: We should not without very good reason depart

in the present situation from the ordinary poace-time procedure,

Fifthly: Canton is openly disappointed with Britain's

strictly neutral attitude and an embargo would only be a further

irritation. It is not for me to assess the weight of contrary

considerations

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