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Attention was also drawn to a telegram from Sir
Miles Lampson, No.846, of May 11th, on the subject of
Major Nathan's proposed industrial loan to Chang Tse-Mr
the effect of which had been that Major Nathan had
undertaken to telegraph to Mr. Waley Cohen, in
London, asking him to consult the Foreign Office on
that question.
The Cabinet agreed
(a) As regards the arms embargo, that the policy
of neutrality among the various contending factions
in China should be adhered to, and thst no
facilities in the matter of arms should be given to
the Cantonesc General Li Chai-sum:
(b) That if Mr. Waley Cohen should visit the
Foreign Office, he should be informed that His
Majesty's Government were not concerned in any
private loan which he might make to any party
in China, but he should be warned that he could not
expect to receive any support, by force or otherwise
in collecting the interest on the loan.
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