2.
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Chinese army is irreparably smashed and air force
is eliminated. The only hope of the new [grp, ontd.] lies in provision of facilities for importation of war material.
The Soviet Government are most unlikely to afford serious
assistance in this difficulty and it would be most unwise
for His Majesty's Government to bolster up dying cause.
The only hope of the Central Government most of whom are men with unsavoury records is to prolong resistance in the hope of embroiling a third party proferably Great Britain.
The Chinese are not fighting our war and have done
nothing but harm to our interests having brought about serious
international situation in Shanghai and gravely jeopardised
our commercial interests in Central China.
Central Government should therefore receive no encourage-
ment to continue [grp. undec.] support whatever in attempt
to import war material via British territory. End of
summary.
Air Attaché considers that we should not encourage any
shipment of aircraft and supplies on grounds
(a) that they encourage the Chinese to no purpose and
(b) antagonise Japanese.
While I feel that you should be in possession of these
views I do not agree with them.
My own observations will follow
Addressed, to Foreign Office No.223 of February 2nd;
repeated to Mission Saving and Peking.
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