Decode.
Sir R. Lindsay (ashington).
NO DISTRIBUTION.
30th June, 1936.
Do
5.56 p.m., 50th June, 1956.
R.
9.30 a.m., 1st July, 1936.
No.172.
(R).
79
120
53548
35
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Your despatch No. 888.
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808 1113
I have received note from United States Government stating
they understand German manufacturers have been exporting large
quantities of war material particularly military aircraft to
Belgium whence they have been shipped to Canton via Hongkong and
have entered China without huchaos from Central Government. They
further understand that French manufacturers have shipped or are
proposing to ship to Canton war material including tanks and
field guns without huchaos from Central Government.
2.
Note states that it would appear Canton authorities
entered above contracts rather than contracts with United States
or United Kingdom manufacturers for specific reason that necessity
of obtaining huchaos would be avoided. Thus United Kingdom and
United States exporters are being placed at disadvantage by action
of Belgian, French and German Government in permitting these
shipments.
Czechoslovak Government must also still be included
in list of Governments with unsatisfactory regulations unless their policy has been changed since shipment of arms last autumn was permitted (see r. Osborne's telegram No. 246 of 1955).
3. Note concludes that if His Majesty's Government in the United Kingdom are prepared to bring matter to attention of Czechoslovak, French and German Governments and once more to attention of Belgian Government, United States Goverment will instruct their representatives accredited to above to co-operate with their British colleagues with a view to obtaining [grp. undec.],of regulations which is essential if policy of His Majesty's Government and United States Government is to be successful.
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