NO DISTRIBUTION.
Sir A. Clark Kerr, (Shanghai) 1958.
17th May,
Decypher.
D.
(Wireless)
R.
9.30 p.m.
No. 778.
17th May, 1938.
17th May, 1938.
280
0:0:0:0
Following is repetition of Yunnanfu telegram No. 22 of
April 21st: begins
Following from lilitary Attaché.
French Military Attache confirms that French Government
have given the Japanese assurances that no war material will
be allowed by rail to Yunnan, There are two reasons for
this (a) fear Japanese would bomb railway between the frontier
and Yunnan thereby causing French heavy financial loss; and
(b) fear their gp. omta.] would occupy Hainan Islands.
Recent minor Chinese success in South Shantung combined with
diminished possibility of Japanese attempting to land in
South China might cause the French policy to change in the
nea future. He added that French Governm nt have now given
permission for Schneider armament frm to sell war material
to China. Contract for large quantity of modern 75 milli-
metre guns likely to be signed but delivery to be made before
October 1939 [gp. undec.] yearly.
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