CO129-496 - Public Offices - 1926 — Page 80

In any further communication

on this subject, please quote

No. F 1093/184/10

and address-

not to any person by name,

but to-

The Under-Secretary of State,"

Foreign Office,

London, S.W.1.

1

Sir,

Confidential.

flus

¡C. 6707)

22926

20th A, ril, 1926. 79

beber

With reference to Foreign Office letter No.

F 1025/184/10 of March 18th I am directed by Secretary Sir Austen Chamberlain to transmit a copy of recent correspondence with His Majesty's Minister at Peking regarding the China Arms Embargo.

2.

It will be observed from paragraph 5 of the despatch to Sir R. Macleay enclosed herein that the attempt to include aircraft within the scope of the Embargo has now definitely been abandoned owing to the attitude of the other Powers

concerned. As it seems unreasonable to handicap British firms in this respect, definite instructions have now been sent to Sir R. Macleay that aeroplanes for commercial purposes do not come within the scope of the 1919 Embargo of the King's Regulations, which control the arms traffic by British

subjects in China. It should be borne in mind, however, that

the import of all aircraft is prohibited by the Chinese Government except under special licence, for which British firms should take care to apply.

3.

It will also be observed that a further modification of our embargo policy is contemplated in order to enable British firms to compete with foreigners in supplying arms to a future stable and friendly Chinese Government for legitimate requirements of defence. The steps to be taken towards this modification are considered in the Foreign Office despatch to Peking enclosed herein; and Sir Austen Chamberlain would

be

101

The Under Secretary of State,

Colonial Office.