CO129-560-16 Traffic of arms to China 11-11-1937 - 1-1-1938 — Page 63

(F ~257/183/10).

63

234

Extract from Canton Intelligence Report for half

year ended 30th September, 1357.

(Communicated by His Majesty's Consul-General

Canton No. 56 of 30th October.)

13.

TRAFFIC IN AMS.

(5350837

An acute shortage of arms and ammunitions is known to exist in Canton, and the Chinese authorities have been making attempts to import their requirements through Hong Kong. On September 6th, the British river-boat "Taishan" which was carrying a large cargo of ammunition from Hong Kong to Canton stopped and returned to Hong Kong on observing a Japanese destroyer in the mouth of the Pearl River just outside Hong Kong waters. This ship was actually stopped by this same destroyer on her next trip to Canton (see my telegram No. 63 of September 8th). I understand that the ammunition originally carried by the "Taishan" was eventually sent up to Canton by a French vessel via Whampoa. Subsequently, the Government of

Hong Kong have let it be known that they will not permit the use of Eritish locomotives or trucks belonging to the British section of the Canton-Kowloon hallway for the transportation of arms and ammunition from Hong Kong to Canton. This is a

question which may soon become acute, as I also understand that British shipping companies are also unwilling to carry such

cargoes. It is reliably reported that German firms in Hong Kong have been obtaining large numbers of Central Government Huchaos for the importation of arms and ammunition into China, but I am not aware that any of these consignments have so far

been sent to Canton. been

British firms in Hong Kong have also been approached by the local authorities here for the supply of aeroplanes and aeronautical equipment, anti-aircraft guns and ummunition, gas masks and other war material, but nothing boncrete has come of these proposals to date.