CONFIDENTIAL.

Miscellaneous I Branch.

D.0. No.190D(M) 39.

My dear Morley,

85303/39

Defence Secretary's Office,

Rangoon, the 26th June, 1939.

With reference to your demi-official letter

No.B.3573/39, dated the 24th May 1939, on the subject of the transport of munitions through Burma to China,

I am desired to say that the Collector of Customs,

Rangoon, who prepares these summaries, has explained that the discrepancies are due to the following

reasons:

(a)

The returns furnished by him show the

materials actually loaded into trains at

Rangoon for re-export to China.

(b)

The figures furnished by the Superintendent,

Northern Shan States relate to the quantities

actually transported from Lashio.

(c)

(a)

The materials arriving at Lashio are not

despatched to China at once, but await the

convenience of the exporter.

The Custom House returns and the returns

of the Superintendent, Northern Shan States

relate to different periods.

Steps are now being taken to provide in future

for the compilation and submission of a single fortnightly

return showing the particulars of munitions that have

actually crossed the frontier and been re-exported to

China.

A.F.Morley, Esq., Burma Office,

London, S.W.1.

Yours sincerely,

(sa.) D.C.P.PHELIPS.

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