CO129-560-15 Traffic of arms to China 18-2-1937 - 15-11-1937 — Page 248

CO129 Colonial Office Hong Kong Records 理藩院香港檔案 All

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scheme involving such a prohibition, and if Ministers agree to it,

it is still not contemplated, as I understand the matter, that

effect should be given to the scheme until the Japanese show

signs of extending their blockade further than they have yet

done and until we have come to an understanding with them.

The firm raise the further question whether H.M.Government

are likely to propose an embargo on the export of arms. As to

this, it is as you know our settled policy not to put an embargo

on the export of arms to particular destinations save insofar as

the other arms-producing countries may do the same.

Consequently,

as there has so far been nothing mooted in the way of an

international non-intervention agreement or of League of Nations

'sanctions" we in the Board of Trade at any rate see no present

reason to expect an embargo on the export of arms from this

country to China. But clearly there may be further developments

at any time, and we do not see that any indication of our possible

future line of action can be given to Mathesons. We think they

must be left, for the present at least, to do what they think best

in their own discretion.

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