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.

66

L

From:

UNITED STATES OF AMERICA.

ALLENDED DISTRIBUTION.

Decypher.

Sir R. Lindsay, („ashington),

D.

9th November, 1938.

1.41.a.m. November 10th, 1938.

R. 9.30.a.m. November 10th, 1938.

No.

409.

-o0o-

Your telegrain No. 704.

I left an aide-mémoire at State Department on October 20th. Following is summary of reply dated November 9th and initialled

by Secretary of State. Begins:

As regards sale of aircraft reference is made to lir. Hull's statement reported in my telegram No. 265. In bringing it to the notice of manufacturers and exporters of aircraft or aeronautical equipment State Department emphasized United States of America's Government's strong opposition which might aid or encourage bombing of civilians anywhere and said department "would with great regret issue any licence" for direct or indirect export of air equipment to countries the armed forces of which practised it. As regards discouraging credit Department of Commerce in June issued circular to district officer expressing relief that in view of increasingly severe Japanese exchange restrictions United States exporters should hold a confirmatory forward letter of

credit before accepting orders for Japan.

As regards its general attitude to Sino-Japanese conflict United States Government "has consistently suggested in appropriate and practicable ways the principles of policy and objectives which it believes should be controlling in relations between States, and it is continuing to give study to appropriate ways and means

calculated

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