CO129-504-13 Chinese situation- request from General Li Chai-sum for assistance in obtaining arms and ammunition 27-4-1927 - 6-10-1927 — Page 57

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Enclosure 2.

Telegram from the Governor of Hong Kong to the Secretary of State for the Colonies.

Dated May 4, 1927.

(Received Colonial Office 5'15 A.M., May 5, 1927.)

MY telegram unnumbered of 24th April: Trade situation.

Trade with Canton is now more or less normal, but both there and at Swatow menace of communistic peasant rising gives cause for anxiety. Trade to Yang-tsze shows heavy falling off, but reverse traffic continues in fair volume.

Enclosure 3.

Telegram from the Governor of Hong Kong to the Secretary of State for the

Colonies.

Dated May 6, 1927.

(Received Colonial Office 6.55 P.M. May 6, 1927.)

My telegram of 6th May: Arms embargo.

Feld, German merchant of Canton, saw Colonial Secretary on 6th May and stated that he had been approached on behalf of Li-Chai-Sum for supply of arms. He is prepared to supply, but cannot do business without insurance, which he cannot effect unless Hong Kong Government guarantees that no British action will be taken, provided that the vessel conveying the arms does not enter British waters.

Feld further said he did not wish the arms to fall into the hands of the Communist faction. If therefore Communists are again in power in Canton when the arms arrive, he wishes to have place of safety for the arms, and would be prepared to bring them into Hong Kong for seizure provided I can give him assurance that the arms will not be forfeited, but will be allowed to be re-exported to a non-Chinese destination.

German consul here saw the Colonial Secretary, and appears to have instructions to abide by Arms Embargo Convention, and seemed to have doubt as to how far his Government would countenance Feld's transaction, though the arms are said to be not coming from Germany.

Feld professes a desire to do nothing which would be contrary to the wishes of the British Government, but presses the urgent need of Li-Chai-Sum for arms for anti-Red campaign.

I recommend that I be authorised to give the desired assurance, provided that Li-Chai-Sum will make public declaration suggested in my telegram of 27th April on this subject.

(Repeated to Peking, No. 85, and Canton.)