[This Document is the Property of His Britannic Majesty's Government, and should be
returned to the Foreign Office if not required for official use.]
(F 10659/6799/10).
45
Cypher telegram to Mr. Howe (Shanghai).
Foreign Office, 10th December, 1937.
No. 245.
214
11.0 p.m.
•
Very Confidential.
(To Tokyo only). Your telegram No. 734.
On the 29th November, the Chinese Ambassador left a memorandum setting out the requirements of the Chinese Government in regard to arms and ammunition, with the request that His Majesty's Government would indicate as early as possible in what proportion financial credit and supply of the materials required could be obtained in
Great Britain.
2. List of requirements included 1,000 aeroplanes, 60,000 machine guns, considerable quantity of heavy and other guns and various transport and communication supplies.
3.
Memorandum stated that a minimum sum of £100,000,000 would have to be raised in Great Britain, the United States of America and France by means of bankers' credit or by 3% bonds issued at 90, secured on customs and other revenues.
4.
Information has been given orally to the Chinese Ambassador regarding such small quantities of military supplies as might be available for immediate purchase in the United Kingdom and he has been informed that a reply will follow on the question of financial
assistance.
5. For your own information, question of loan to the Chinese Government for war purposes presents very grave difficulties.
Repeated to Peking No. 652, Hankow No. 6, Tokyo No. 245 and Washington No. 590.
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