CO129-552-6 Traffic of arms to China 2-1-1935 - 27-12-1935 — Page 18

18

lol 2013.2.

by Ande

DESTROYED UNDER STATUTE

67 2.0.

desp. 462

for absens.

320 MAY 1935

17. S. 35

Ref 28, enclesing

funds. cqmy

was hunglen

hale from

bent of state,

(3) in 53548.

(2) in 53548.

The United States Government them-

selves drew the attention of His Majesty's

Ambassador at Washington to the fact that

consignments of arms were passing through

Hong Kong from the United States of America

to China without a Nanking huchao owing to

the development of a practice on the part of

Hong Kong importers of informing American

exporters that shipments are destined for

Hong Kong (and consequently do not require

a Nanking huchao) and of informing the Hong

Kong authorities that the shipments are destined

for China (and being therefore in transit,

apparently impose no obligation on the Hong

Kong Government to ascertain that a Nanking

huchao has been obtained). The United States

Government suggested that this loophole might

be closed by the Hong Kong Government insisting

upon the production of documents issued in the

country in which the shipment originates as

the determining factor as to what constitutes

goods in transit.

Practically simultaneously the

Hong Kong Government pointed out the existence

of the same loophole and suggested as a

remedy that the United States Government should

supply the Hong Kong Government with copies of

licences to export arms to Hong Kong, the

Hong