CO129-567-5 Traffic of arms to China and Japanese air-raids on Kowloon-Canton railway 11-4-1938 - 19-1-1939 — Page 61

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301.61

CYPHER TELEGRAM from the Governor of Hong Kong to the

Secretary of State for the Colonies.

Dated 2nd December, 1938.

Received 8.45 a.m., 2nd December.

IMPORTANT

No,355.

Addressed to the secretary of State for the Colonies,

telegram No.355 of the 2nd December. Shanghai No.221. Tokyo

telegram No.114. Canton Saving.

I should be grateful for advice as to this Government's

proper attitude towards future applications by Hong Kong agents

of the Chinese Government for permission to export munitions to

South Kuangtung by lorry or coasting vessel. Although there are

still some small parties of Chinese troops many of them guerillas

in Canton and Jehchow-Bias Bay area, Japanese forces may be

regarded as being in de facto possession and could I feel

justifiably object to such permission being accorded.

Negotia-

tions for re-opening river would probably suffer in consequence.

Japanese troops are now at considerable distance from

the border but will certainly return if Colony continues to act

as source of munitions supply. This is very undesirable as

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moreover it would entail

increasing likelihood of "incidente"

immediato recrudescence of refugee problem which now shows signs

of diminution.

In these circumstances I regretfully consider that correct

reply to applications is that it is gravely contrary to the

interests of the Colony to permit further export of munitions

except by deep sea vessels.

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