CO129-560-15 Traffic of arms to China 18-2-1937 - 15-11-1937 — Page 165

SECRET.

10

165

FOR SECRET RECORD IN THE DEPARTMENT

CyCaustaus

8.10.37.

CABINET 36 (37)

EXTRACT from Conclusions of a Meeting held on

Wednesday, 6th October, 1957.

THE FAR EAST.

7. The Secretary of State for Foreign Affairs drew

The Supply of attention to a discussion which had taken place at the Arms to.

Sub-Committee of the Committee of Imperial Defence on

Defence Policy and Requirements on the 30th September on the subject of the supply of arms to the Far East, when the

following conclusions had been recorded:

"(a) That private firms should continue to be

allowed to supply armaments to the belligerents in the Sino-Japanese dispute, provided that the Service Department, or Departments, concerned in any particular order are satisfied that it can be accepted without detriment to their own re-armament programme.

"(b) To note that the Secretary of State for Foreign Affairs would arrange to have the legal aspects of the supply of armaments from Government surplus stocks to the belligerents in the Sino- Japanese dispute examined in the Foreign Office."

(D. P. R. 43rd Meeting, Minute 3)

He presumed that the policy should be to continue supplies

nominally to both parties since there had been no declaration

of war, though, in practice, to do whatever we could for

China and to delay the issue of licences for exports to

Japan.

In the course of the discussion on this point the Cabinet were informed that certain aeroplane firms had regular contracts to supply engines to Japan. These had not been interfered with by the Air Ministry as the engines were

equally