18
2.
would naturally prefer if possible to obtain these supplies on
favourable credit terms but would pay cash if necessary.
I told Commander Hsu that I could not promise to grant any
of these desiderata and could do no more than pass them on as
coming from General Pai Chung-hsi and ask for an early reply. In
particular I was of opinion that supply of volunteer British
crews for submarines was impossible in view of attitude adopted by
His Majesty's Government at Nyon conference. Commander Hsu said
he understood, but expressed opinion that His Majesty's Government
should meet Chinese desiderata as far as possible especially the
naval requirements even at some expense to our own rearmament as it was of highest importance to England that Japanese fleet should
be weakened as much as possible. He also said that question of
an appointment of British naval adviser was under consideration
and that Minister of Marine might shortly be instructed to approach
us in the matter. If England was unable to help in supply of
naval war material and adviser he feared that China might be forced
to turn to Germany which she was reluctant to do.
Commander Hsu mentioned that question of supplies of certain
war material to China had already been raised in London by
Chinese Ambassador.
Foreign Office telegram No.245 to Shanghai presumably refers
to this approach.
I should be grateful to learn as soon as possible what reply
I should return to General Pai Chung-hsi.
Repeated to Foreign Office.