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 81

85

German firm.

-2-

German agent has given me particulars and stated that he can import these from Scandinavian countries by a Norwegian ship provided shipment will not be stopped by British and he asked attitude of His Majesty's Government in view of anti-Communist move- ment. He also wished to insure with a British company. I could only reply that provided that the ship did not enter British waters, consignment was not likely to be stopped. As it is difficult to avoid British ports this is unsatisfactory and risk of seizure makes trans-

In the actions unattractive except at high price. present circumstances can I give assurance that con- sigment for Li Chai-sum will not be seized en route and authorise British insurance company to cover risk?

Canton naval authorities also wish to order from

Arnhold and Company eight motor boats with Thornicroft engines and wireless for pirate prevention and have

offered attractive terms for payment. I have told

agent that there is no objection provided that no

armement is supplied but if you do not approve please

telegraph immediately as the matter is urgent.

Anti-foreign movement was not contemplated when

arms agreement was concluded. Latter like all co- operative schemes in China has proved a sorry ferce

from British point of view and is now definitely

dangerous to our interests. We cannot afford to discard any political weapon in present struggle and should use our control of arms trade especially in Hongkong to our

own advantage.

Addressed to Foreign Office No. 32.

Repeated to Feking wo. 45 and longkong.