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 83

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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-

actions unattractive except at high price. In the

present circumstances can I give assurance that con-

sigment for Li Chal-sun will not be seized ell 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 to la

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. Letter like all co-

operative schemes in China has proved a sorry farce

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 Peking wo, 45 and longkong.