CO129-477 - Public Offices - 1922 — Page 230

ment.

In

The Netherlands, Denmark and Belgium subsequently adhered to this arrange- Italy also acceded, but with the important reservation that all contracts already concluded by Italians or to be concluded by them before all the Powers had signified their consent to the agreement should be excluded. The reason for this reservation was the existence of two Italian arms contracts not yet executed. December the British, French, American and Japanese representatives at Rome protested against this attitude and asked for assurances that none of the existing Italian contracts would be executed. So far as British subjects were concerned, the arms embargo was at once brought into action by means of an Regulation." which is still in force. (Copy enclosed.)

Urgent King's

The arms embargo policy succeeded at any rate in putting a complete check on the supply of arms from Japan; and the Japanese have observed its stipulations very faithfully, though from time to time they have urged that they can no longer handicap their merchants, unless other countries interpret the embargo equally strictly. For the smooth and effective working of the embargo has been hampered for several reasons, such as (1) the continuance of civil disorder in China-at the time of the embargo it appeared as if peace were in sight, (2) difficulties of arriving at an exact definition of "munitions of war, (3) difficulties experienced, either willingly or unwillingly, by certain countries in restraining the activities of their nationals.

The following cases illustrate the kind of difficulties with which the embargo policy has had to contend:-

1. Vickers Aeroplane Contract.-After the announcement of the embargo. Messrs. Vickers, supported by His Majesty's Government, signed a contract with the Chinese Government for the supply of aeroplanes for commercial use. At the time, this deal aroused adverse comment, and we were accused of bad faith, especially when, during 1920, these aeroplanes were actually seized by warring generals and used for military purposes.

2. The Italian Arms Supply-The unsatisfactory attitude of the Italians has already been indicated, and the reservation made by them before adhering to the embargo. A cargo of Italian arms reached China in November 1919, and were there stored in Italian barracks. In July 1920 it became known that some of these arms were being supplied to the Chinese. The Italian Minister publicly admitted this, but stated that the remaining stocks were under the control of his Legation, and no further deliveries could be made without his consent. This incident led to renewed protests at Rome on the part of Great Britain, France, the United States of America and Japan. The Italian reply was unsatisfactory; they maintained their original reservation.

3. The American Arms Supply.-During 1920 and 1921 it became known that Americans were supplying the revolutionary Government at Canton with a consider- able number of aeroplanes, obviously for military use, and that American machinery was being supplied for Canton arsenal, where an American was employed as engineer-in-chief. Americans were also working at the Canton aerodrome, and in one case an American aviator had actually been killed in action in the Chinese civil war. Contrary to the case of the Italians, there is no reason to think that the United States Government connives at these activities. Their legal position constitutes the difficulty. On the 22nd March, 1921, they explained to His Majesty's Government that, owing to the repeal of the Espionage Act (of the 15th June, 1917) they had lost the legal power to control the export of arms and ammunition, endeavouring to obtain from Congress a renewal of the necessary authority. They But they were had not changed their policy in regard to the embargo, and they hoped that nothing would be done to change the policy of the other Powers.

4. Training of Ariators. In the spring of 1921, His Majesty's Government refused a request from the Chinese Government for instruction in aviation for two Chinese officers. We considered that it was contrary to the spirit of the embargo. The students were at once given facilities in America. In reply to an enquiry from us, the United States Government replied that they did not regard such training as falling within the scope of the original arms embargo, but that if it were the desire of the British Government to broaden the scope of that agreement, they would be happy to give consideration to any formula which we might suggest.

The question dropped until December last year when it was again brought to the fore by the action of the Italians. The Japanese Minister at Peking had ascertained that Italian arms had been handed over secretly on the nights of the

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21st and 22nd November to the Military Governor of Chibli. The Italian Chargé d'Affaires had stated in justification that his Government had never recognised the arms embargo as applying to contracts made before its adoption. Intil ordered otherwise. he considered bimself at liberty to dispose of the arms.

His Majesty's Minister, however, has been informed that there were actually in the Italian Legation exhibits of arms, and a catalogue of the stock available for intending purchasers. He is therefore sceptical of the Italian assertion that they had contracted to sell any of these arms before the date of the embargo. He thinks that the arms in question were merely shipped before that date.

Identic telegrams on the subject were forthwith addressed to their Governments by the British, French, Japanese and American Ministers. The Japanese Govern- ment proposed at once to protest at Rome; and the British Ambassador there was instructed to associate himself with the protest.

At the same time the representatives of the four Powers at Peking suggested that the matter be brought before the conference at Washington.

The question has been further complicated by a report that a Danish firm is supplying a large order for plant for the arsenal of Chang Tso Lin, Military Governor of Mukden; and that machinery for the manufacture of rifles and guns for the same arsenal is to come from Germany. Denmark is a signatory of the arms embargo Germany is not. (But by article 170 of the Treaty of Versailles "manufacture of and export to foreign countries of arms, munitions and war material of every kind by Germany is prohibited.)

Commenting on this latest report, Sir B. Alston considers that the matter is of an urgency warranting serious discussion at Washington with a view, if possible, to bringing into operation a really effective and universal embargo, or, if this unfortunately proves unobtainable, to placing all foreign Powers on an equal footing as regards liberty to supply China with war material.

The United States Legation at Copenhagen has enquired (the 22nd December, 1921) from the British Chargé d'Affaires, whether he had been instructed to concert with them and the Japanese in a protest to the Danish Government.

The second alternative is clearly undesirable, and contrary to all the aspirations of the conference for the rehabilitation of China. The Pacific and Far Eastern Committee has already (the 5th January) adopted a resolution condemning the excessive military forces maintained by provincial chieftains. In pursuance of this policy it might seem opportune for the Conference Powers (who have all except China signed the embargo and who include all the Embargo Powers except Spain, Russia, Brazil and Denmark) to reaffirm that agreement, and to promise to take such steps as may be necessary to render it effective."

A draft resolution for submission to the conference is attached hereto.

Sub-Enclosure 1 to Enclosure 1 in No. 1.

NOTICE.

THE following regulations, made by His Majesty's Minister, and hereby declared to be urgent, are published for general information.

Peking, June 2. 1919.

J. N. JORDAN,

His Britannic Majesty's Minister.

KING'S REGULATIONS MADE UNDER ÅRTICLE 155 or "THE CHINA ORDER IN COUNCIL, 1904, AND ARTICLE 13 OF "THE CHINA (AMENDMENT) ORDER IN COUNCIL, 1907."

No. 25 of 1919.

any

person

of

Regulations prohibiting Import, Export, or Dealing in Arms.

other 1. No person shall, either on his own behalf or on behalf of whatever nationality—

Import into or export out of China or any concession, settlement, or leased territory in China; or buy, sell, or deal in; or enter into negotiations for the sale or purchase of or other dealings in arms, ammunition and munitions of war of every description, but exclusive of sporting weapons and ammunition therefor.

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