CO129-564-10 Aeroplane assembly depot- proposed establishment 7-9-1937 - 14-1-1938 — Page 83

83

the scheme was to be regarded as incompatible with the

"neutral position which the Colony should maintain at present

"and which it would be obliged to maintain were the existence

"of a state of war to be recognised in the future", and the

last paragraph of those instructions (in F 7262) would seem

to preclude the aeroplanes being flown off even unarmed.

In this matter, therefore, we have in a sense detrimental

to China's interests gone further than we need have.

(5) This raises the question of the League Resolution,

which recommended that members "should refrain from taking

"any action which might have the effect of weakening China's

"power of resistance

and should also consider

Mr.

"how far they can individually extend aid to China".

Fitzmaurice interprets this as meaning that members of the

League should not take any action to cut China off from

normal and usual facilities, and, as shown above, our

instructions to Hong Kong can probably be held to have

restricted such facilities.

(6) The question is therefore whether those instructions

should be reversed or modified. One would naturally like to

do so, quite apart from our obligations arising out of the

League Resolution. But it has to be remembered that if

effective supplies of aircraft and other war material are

seen to be passing through Hong Kong, it is likely that the

Japanese will tighten their blockade measures. The

proclamation by Japan of a state of war, to which she might

be driven in the circumstances, and the arrogation to herself

of belligerent rights, would be a serious matter for British

shipping in the Far East.

(7) We therefore have to balance the desirability of

retaining Chinese goodwill against the risk of seeing

ourselves