CO129-560-15 Traffic of arms to China 18-2-1937 - 15-11-1937 — Page 113

113

settlement. If China received large supplies of arms

and ammunition from abroad her antagonism to Japan would

be strengthened and the conflict prolonged and intensified.

The Japanese Government hoped, therefore, that the

Governments of third Powers would refrain as far as possible

from doing anything likely to encourage China in this

direction. And finally, the Japanese Government did not

contemplate for the time being any action to prevent the

importation of arms and ammunition into China by foreign

vessels, but future developments might compel them to

devise more effective and suitable measures to stop all

importation of arms and ammunition into China" (see tele-

gram from Tokyo to the Foreign Office No.333 of the

31st August).

30. On the 5th September the embargo zone was extended to

cover the whole Chinese coastline from Chinwangtao in the

north to the Indo-China frontier in the south, with the

exception of Tsingtao and "leased territories of third Powers."

In making this announcement the Japanese Government again

declared that they would respect the "peaceful commerce of

third Powers," with which they had no intention of interfering.

The only points on the Chinese coast to which the embargo

does not extend are, accordingly, Tsingtao, Hong Kong, Macao

and Kwangchowan.

The exclusion of Tsingtao is at first

sight somewhat surprising;

the Japanese explain that it is

due to their desire at any cost to avoid any cause of friction

which might lead to hostilities in that area; in any case it

is of no practical importance.

31. On the 1st September the aide-de-camp to the Minister

of Marine informed the naval attaché to His Majesty's Embassy

in Tokyo that Japan was concerned over the fact that Hong Kong

was being used as an entrepôt for the import of munitions for

the