2

C. in cases where it is impossible to guess the values at all, (e.g. I am unable to conjecture the average price of a shell), to give a list of supple- mentary items. It will be seen that, not unnatur- ally, consignments from Germany occupy the larger portion of this list.

The result of a comparison of the items which are valued is as follows:-

(in Hongkong dollars), May 22nd-July 30th

Great Britain

1,887,500

(58.5%)

Germany

1,341,509 (41.5%)

Italy

Nil.

(Apart from the above-mentioned difficulties of calculation there is the further trouble that the returns for two fort- nights running give an item under Great Britain of two speed- boats at exactly the same price: there may be four speed boats in all: but one is inclined to suspect that the same pair may have got in twice. If they have, some $480,000 should be deducted from the United Kingdom total as given above).

(1)

CONCLUSION.

The figures given under 1. above, i.e. up to the end of May can probably be taken as statistically reliable. If they are used, however, it must be bome in mind that as from April they are strictly confidential.

(ii) The figures under 2. are of no value as statistics whatever. They lead however to the conclusion that up to the end of July more arms were still reaching China from Germany than from Great Britain. (I think this is a safe assumption from the great preponderance of German material among the "extras" to which no valuation can be given). (The figures for July 31 August 13th show a German preponderance over

/United

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