CO129-552-6 Traffic of arms to China 2-1-1935 - 27-12-1935 — Page 19

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(41) in 33740.

but se

barn 2 9 N! Z

Hong Kong Government undertaking, should these

documents indicate Hong Kong as the port of ultimate

destination, to refuse to allow re-export to China without the production of a Central Government

huchao.

This suggestion was passed on to the

United States Government, who have replied that they view the suggestion with favour, but before acting

upon it, would like to be assured that, to avoid discrimination against American arms exporters, a

similar arrangement will obtain in respect of

British and other exporters.

The suggestion can, however, only be

adopted if the exporting country has a system of export control by licence (which Belgium has not),

and if the exporting country is willing to co-operate

with the Hong Kong Government in this way to make

the closing of the loophole effective.

We might reply to (67) that the Secretary

of State does not anticipate any objection on the

part of the Hong Kong Government to the extension

to other countries, including Great Britain, of the

system proposed in the case of the export of arms

from the United States to or through Hong Kong.

As the Foreign Office are no doubt aware, copies of

licences for the export of arms and war material to

China issued by the Board of Trade are already

forwarded as a matter of routine to the Govemor of

Hong Kong, though, so far as the Secretary of State

is aware, no arrangements have been made for this

practice to be employed as a means of checking

whether the information as to the port of ultimate

destination given to the Government of Hong Kong

to the Boana I Trade

and of the country authorising the export is

consistent.

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