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92

From FRANCE.

Telegram (en clair) from Sir. Phipps (Paris),

5th April, 1938.

D.

BY BAG.

6th April, 1938.

6th April, 1938.

R.

No. 234 SAVING.

83

Your telegram No. 68 Saving, and report from Yunnanfu in the "Times" of March 28th reporting rumours that the railway from Indo-China into Yunnan had been closed recently to the transport of war material on instructions from Paris.

The Head of the Far Eastern Department at the Ministry of Foreign Affairs informed a member of my staff on April 5th

The French that the report in the "Times" was untrue.

Government, he said, had taken no fresh steps to make an embargo on the transport of arms absolute, and were adhering to their policy of permitting the transit of arms in execution of outstanding old orders, but not in other cases.

Monsieur Hopponot added that the report might perhaps have arisen owing to the fact that a Russian vessel had recently landed arms in Indo-China under false pretences. This was discovered in time to have the consignment stopped at or near

the Chinese border.

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