CO129-552-6 Traffic of arms to China 2-1-1935 - 27-12-1935 — Page 227

223

-

issuing authority to the Governor of Hong Kong. In the

case of those comtries who have not instituted the export

licenoc system the suggested procedure obviously would not be applicable. His Majesty's Government could not, however, view with equanimity a situation whereby the export of arms

from Belgium and Switzerland the two countries primarily

concerned would be in a position to benefit at the expense

of ports from those countries who have instituted a

licence system. They would, therefore, propose, if the

procedure outlined above 18 adopted, to instruct the

Governor of Hong Kong to require, in the case of exports

from Belgium or Switzerland, the production of a through

contract made between the exporter in Europe and the final

importer in China before affording any consignment transit

facilities, In this connexion it is appropriate to draw

attention to the small volume of trade involved. According

to returns furnished by the Governor of Hong Kong, no arms

exported from Switzerland passed through the colony during

the eighteen months ended the 31st December, 1934, and arms

in transit from Belgium during the same period were valued

only at some £14,500 in relation to a total trade of some

£828,000.

3. I shall be glad if you will address a note to

the United States Government in the light of the preceding

paragraph, and enquire whether, in those circumstances

the United States Government would be prepared to concur

in the procedure already suggested to them.

4.

You will observe that no mention has been made

of exports of arms consigned from Germany. This omission

is due to the difficult and anomalous situation which has

arisen owing to Germany's action in exporting arms in

contravention/