CO129-552-6 Traffic of arms to China 2-1-1935 - 27-12-1935 — Page 220

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CONFIDENTIAL.

Copy to H.M. Minister, Peking (31)

GOVERNMENT HOUSE,

HONG KONG.

14th June, 1935.

Sir,

I have the honour to refer to your

Confidential despatch of 17th April, 1935, requesting further information desired by the Foreign Office

with regard to two consignments of arms and ammunition

imported from the United States of America for Canton via Hong Kong.

2.

I attach copies of the contracts referred

2 Enclosures. to, and would make particular reference to the condition

Bib

Copy 14 mall. to F.O.

(3)

(6)

(2)

that shipment of the goods was to be made "from United

States through cargo for Canton". This was interpreted

as indicating that the fact of the ultimate destination

of the arms being Canton would be known to the United

States authorities; it now appears from the fourth

paragraph of Foreign Office despatch of 19th February,

1935, copy of which was sent under your Confidential

despatch of 7th March, 1935, that this interpretation

was erroneous.

3.

It would appear that this is precisely the kind of loophole which will be effectively stopped

by the adoption of the method suggested in Sir William Peel's Confidential despatch of 14th January, 1935, and

THE RIGHT HONOURABLE

MALCOLM MACDONALD, M.P.

&C.,

&C.,

&c.

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