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2.

we are to close Hongkong, and help Japan to end the war and extricate herself from her difficulties.

Policy of His hajesty's Government remains as stated in my predecessor's telegram No. 503 of 1937 and we have no intention of disregarding our obligations under the League Resolutions. We shall do our best to keep Hongkong open and to help China in her desire to provide herself with alternative channel of

supply through Burma.

I have no confirmation of the statement that Germany has stopped sales to China and I am asking His majesty's mbassador at Berlin and Governor of Hongkong whether they have any

knowledge of this. I am also asking His Majesty's Consul General at Saigon what is present position in regard to transit of arms

through Indo-China.

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