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considerations namely possible blockade of Canton River,

interference with Chinese section of Canton-Kowloon railway

and even effective blockade if Hong Kong following formal

declaration of war. But if the above is accepted there

appears no good reason to forbidding British merchants from

accepting orders which will ctherwise only go to foreign

competitors.

I venture

further the opinion that re-armement of

China after the present Ecvtilities is a vitally important

question for international consideration but can hardly be

greatly affected by consignments now under consideration,

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