CO129-542-1 China- traffic in arms 31-10-1932 - 9-2-1934 — Page 150

4.

147

if United States' nationals chose to disregard the rules issued

by Nanking in this matter the United States Government would be

unable, even if willing, to force upon them the compliance which Mr. Castle expects His Majesty's Government to impose on British

nationals.

4.

Finally I trust that I may be permitted to express

some surprise that Mr. Castle should have thought it within his

duty to mention this matter to His Majesty's Ambassador.

At

the time in question His Majesty's Government were, as far as I

am aware, under no obligation to any other Power than China in

respect of the supply of munitions to the latter, and if anything

connected with the transaction now in question could form the

basis of any complaint I venture to suggest that China alone is

entitled to make that complaint and that an official of a third Power is not in order in making any representation on the subject, however friendly. As Mr. Castle points out, the Nanking Government has made no complaint and I think it may safely be assumed that Mr. Castle's communication had its origin in trade

rivalry.

British Aeroplane manufacturers seem to have found

it difficult to establish a footing in the Yang-Tsze Valley where

I understand American interests in close touch with the Nanking

Government have established themselves firmly. British manufact-

urers have managed to establish a connection with the South Western

Provinces and it would appear that American interests are now

endeavouring to undermine that connection.

2

I have the honour to be,

Sir,

Your most obedient, humble servant,

Governor,&c.

Page 150Page 151