CO129-552-6 Traffic of arms to China 2-1-1935 - 27-12-1935 — Page 251

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sent to the country of origin for endorsement by the Chinese

Legation there.

I may add that the possibility of

"on consignment" munitions being smuggled out of Hong Kong into China in defiance of this Government's decision is very

remote. Not only are stocks of any magnitude required to be

kept in the Government depot, but the stocks held and sales made by local dealers (who have to hold a licence for the purpose) are regularly checked by the Police Department

against licences and permits issued to would-be purchasers.

I have the honour to be,

Sir,

Your most obedient servant,

(SIGNED) 8. PEEL

Governor, etc.