CO129-556-13 Traffic in arms to China 6-1-1936 - 13-1-1937 — Page 46

Encl.No.1.

Encl.No.2.

2.

46

stocks of war materials by arms dealers in this Colony, I an advised that there exists no legal prohibition of the import of such goods for the purpose of resale; though the difficulties encountered by a dealer in disposal of arms are sufficient to ensure that, normally, only a few pieces are imported for use as samples in negotiations with Chinese Government authorities. It has occasionally happened that a consignment destined for some Chinese authority has reached Hong Kong and that the local importers have failed to prove satisfactorily its transit status, or to produce valid huchaos for its onward carriage to China; again the case has arisen in which, apart from any such difficulties, the consignee has, for one reason or another, failed to take delivery. In such cases, if the local importing firms do not decide to return the goods to their country of origin, or to dispose of them in any other place where this may legitimately be done, the goods lie in the Goverment Gunpowder Depot, and are eventually, in some cases, sold to Chinese authorities as from stock in this Colony after the proper procedure regarding huchaos, etc., has been observed.

4.

In illustration of the statements in the above paragraph, I enclose a detailed history of the machine guns to which your third paragraph refers, and a photostatic copy of an import permit recently granted by the Macau Government in respect of twenty revolvers.

I have the honour to be,

Sir,

Your most obedient, humble servant,

Waldecoty

Governor, &c.