CO129-573-2 Export of torpedo boats to China 14-5-1938 - 5-10-1938 — Page 22

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and, from the official point of view, satisfactory method

of delivery from Hong Kong could be arranged largely depends

on the way in which Japanese operations and policy develop

and is a matter on which Departments naturally could not

commit themselves in advance.

As regards licences there is at present nothing

to prevent the Admiralty from granting you the necessary

licences under the Washington Naval Treaty Act to build

and despatch the boats. As mentioned above, however, it

is impossible to give a guarantee that at any given date

in the future a permit of this kind would be sufficient to

ensure complete freedom to despatch and deliver the boats.

The Board of Trade have, of course, pointed out that even

under existing legislation a licence from them would be

necessary to cover the shipment of any equipment for the

boats to which the Arms Export "rohibition Order applies

if it went out as freight.

I am sorry not to be able to send you a more

definite reply, but in the time available it has not been

possible to consult high authority and the foregoing

accordingly represents only the views of officials who

normally deal with these matters in the first instance.

In any case I doubt whether even if we had written to the

other Departmente officially they would have been prepared,

with the world in ite present state, to commit themselves

any more definitely as regards the future.

Yours faithfully,