CO129-564-11 Road communications with Canton. Includes 1 photograph depicting- Bridge over Shum Chun River- China. Dated... 20-8-1937 - 18-1-1938 — Page 27

Copy.

(F.8797/130/10)

TO CHINA.

H.R-Conten

Cypher telegram to Mr. howe (Nanking).

Foreign Office. 3rd November, 1937.

5.00 p.m.

No. 438.

IMMEDIATE.

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18

27

Your telegram No. 603 (of the 22nd October; supply of

arms to China via Burma).

1. My two immediately following telegrams repeat tele-

grams on this subject between the Secretary of State for Burma

and the Governor of Burma.

2.

Government.

His Majesty's Government and the Government of Burma

welcome in principle the establishment of direct road connexion

between Burma and China, and you may so inform the Chinese

Actual route must depend on latter's decision,

but for the immediate purpose the route from railhead at

Lashio via Muse and Mungling to connect with the motor road

between Yunnanfu and Siakwan would seem most suitable. On a

longer view route via Kunlong would perhaps be more advantageous;

this would, however, raise question of territorial rights in

Hopang salient.

3.

Government of Burma could not incur any considerable

outlay on improving existing roads or on new construction

without being assured that trade in arms (and other goods)

would produce enough in transit charges to make it a reasonable

proposition and that these charges would be promptly paid.

Addressed to Nanking No. 438; repeated to Peking

No. 506, Yunnanfu No. 5 and Burma No. 177.