CO129-567-4 Traffic of arms to China and Japanese air-raids on Kowloon-Canton railway 3-1-1938 - 3-5-1938 — Page 187

[This Document is the Property of His Britannic Majesty's Government, and should be returned

to the Foreign Office if not required for official use.]

188

From CHINA

Decypher. Mr. Howe (Shanghai).

11th February, 1938.

D.

/T.

11th February, 1938.

R.

1.00 p.m.

11th February, 1.36.

No. 35.

Consul-General Henko reports begins:-

Hanyang arsenal plant now being sent to Chungking where work will be carried out under Russian supervision. This is bein done on advice of Soviet Ambassador who is reported to have stated that since grp. undec.] arsenal at Barcelona, [2 grps. undec.] Russia now the only supplies of essential component parts, assembling and repairs of aeroplanes, guns etc. being done locally. It appears that nearly 40% of war material and aircraft supplied by Russia arrived damaged and irreparable. Austrian employees [grp. undec.] arsenal state that arsenal is closing down and that the foreign employees have been paid off.

Ends.

Transfer of arsenal to Chungking is a wise precaution in view of danger from Japanese bombing.

Addressed to Foreign Office No. 295: repeated to Commander- in-Chief, General Officer Commanding, Saving to Peking and General Staff Officer No. 1, Shanghai.