[This Document is the Property of His Britannic Majesty's Government, and should be returned

to the Foreign Office if not required for official use.]

86

FROM CHINA.

Decypher,

Mr. Blunt (Canton).

18th November, 1937.

D.

( BY W/T)

18th November, 1937.

R.

6.C0 p.m.

18th November, 1937.

No.56.

XXXXXXXXXXXX

I like that!

Addressed to Peking No.134.

My telegram No.117.

Mayor returned November 4th.

In reply to my enquiries he was reticent about his conversations in Indo-China but admitted that government had agreed tacitly to passage of military material and remarked

that French had "less fear" than British.

2. A reliable Chinese source informs me that in

return the Mayor agreed to special facilities for importation into Indo-China of salt, rice and coal.

3. Mayor confirmed local rumours of great progress

in roads and mentioned new roads from Talifu to Burma and

Mengtze to Indo-China border.

Repeated to Nanking Foreign Office. Governor Hongkong,

Commercial Counsellor, Shanghai.

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