CO129-552-6 Traffic of arms to China 2-1-1935 - 27-12-1935 — Page 241

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circumstances, the United States Government

would be prepared to concur in the procedure

already suggested to them.

4*

Your Excellency 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 of the terms

of the Treaty of Versailles which entirely

prohibits such export. During the period

mentioned at the end of the preceding

paragraph,

German exports of arms to China

via Hong Kong were in fact of the value of

£143,500. Yet any attempt to regulate this

traffic by either of the systems described

above might well involve a tacit recognition

of Germany's right to export arms notwith-

standing the terms of the Treaty.

Should the

United States Government enquire of Your

Excellency what steps it is proposed to take

in the case of exports to China from Germany

you should inform them orally that His

Majesty's