CO129-565-16 Chinese National Economic Council- proposed establishment of branch office 9-12-1937 - 22-12-1937 — Page 15

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office, having regard to the fact that its activities might

be regarded by the Japanese Government as auxiliary to the

prosecution of hostilities, and that it is undesirable to

afford the latter any additional pretext for the declaration

of war and the imposition of a blockade (which must prevent

China from obtaining the larger part even of those supplies

which are now reaching her through Hong Kong). He might

suggest that in the circumstances Mr. Soong should examine

whether the functions which the proposed branch office would

fulfil could not be as satisfactorily performed by some less

patently official body.

3. I am to add that the National Economic Council is

a body of great importance of which at least six Cabinet

Ministers are members and that in 1934 (the last year for

which figures can be traced) it was responsible for

expenditure amounting to 15 million dollars. There can be

little doubt that its activity in Hong Kong would not be

limited to the work ostensibly put forward as the reason for

establishing a branch office.

4. Copies of this letter are being sent to the

Admiralty, War Office and Air Ministry.

I am,

Sir,

Your obedient Servant,

لم