CO129-564-10 Aeroplane assembly depot- proposed establishment 7-9-1937 - 14-1-1938 — Page 67

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so that it could import and forward war materials.

7.

Malley stated that the Chinese authorities realised

that British officials were sympathetic and anxious to help,

but they were getting rather bitter against British merchants.

He stated that Germans and Italians were contracting for the

supply of war materials to the Japanese.

8.

Russia had offered very great assistance for

practically no return, but in spite of that, China would prefer

to deal with the United Kingdom.

9.

(NOTE: I think it very unlikely that China would turn down a very good offer from Russia if they received it.)

Another rather unbelievable statement of Malley's

was that the Air Force in the United Kingdom were releasing a

number of aircraft being manufactured for them so that they

could be sent to China.

Malley is of course very pro-Chinese, and I felt

that his remarks regarding the unhelpful attitude of the

British were mainly Chinese inspired.

Hongkong.

16th September, 1937.

(SGD.) G.C. PELHAM.