CO129-556-13 Traffic in arms to China 6-1-1936 - 13-1-1937 — Page 56

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for illegally imported arms and the commercial sacrifice

involved in conforming to the Chinese Government's regulations

will now be slight. In France a predominantly socialist

government has recently come into office; the new Belgian

Cabinet contains a large socialist element: these

governments prina facie may be expected to favour increased

control of the arms traffic and, indded, in France some

progress has already been made towards the nationalisation

of arms manufacture.

Furthermore, it is considered that the

time has come when the theoretical position established by

the Treaty of Versailles need no longer bar an approach to

the German Government in the matter.

5. As regards the manner of the fresh approaches

which it is suggested should be made, 'r. Eden inclines to

the view that it would be appropriate for these to be

undertaken by the United States Government, if they agree.

On to previous occasions the initiative has been taken by

His Majesty's Government, although the United States

Government have an equal, if not greater, interest in

the matter. The offer might, however, be made to support

that Government in any representations which they might

make.

6. Paragraphs 5-8 of Board of Trade letter under

reference relate to the request of the United States

Government that His Majesty's Government should extend the

application of the export licensing procedure to cover

aircraft. A separate letter is being addressed to you

on this point.

7.

Copies of this letter are being sent to the

Admiralty, Var Office, Air Ministry and Colonial Office.

I am,

Sir,

Your obedient Servant,