CO129-560-15 Traffic of arms to China 18-2-1937 - 15-11-1937 — Page 182

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considered, but, apart from this question, he understood

the view of the Sub-Committee to be that the sale of

armaments to the countries concerned should continue, in

so far as such armaments orders did not interfere with our

own re-armament programme, the Service Departments being

the arbitrators in this respect.

CONCLUSIONS.

THE SUB-COMMITTEE agreed: -

(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.

2 Whitehall Gardens, S.W.1.

30th September, 1937.