CO129-573-2 Export of torpedo boats to China 14-5-1938 - 5-10-1938 — Page 55

as the Barcelona Convention and statute, and the

position may emaily erine in which we forbid the export

of war vessels to China, ii constructed in Hong Kong

or even in the Unit d Kingdon, but cannot forbid their

transit ir constructed and consigned from certain foreign

yards - so long as no formal state of war cxists to interrupt

the privileg s of transit traffic under that statute.

9.

There are also the League reculutions which

would seem to impose at least a moral obligation on His

Kajesty's Goverment to refrain from adopting a line of

conduct detrimental to the Chinese power of resistance

unless circumstances arose, e.g. a declared state of

war, which necessarily imposed upon us alternative

obligations such as govern neutrals under the lingue

Convention.

10. A

I regret the length or this letter, but I

hope that it will show you the sort of doubts we are

inclined to have as to whether we are maintaining a

sufficiently consistent line of policy in the various

decisions which are reached on successive issues

sffecting Hong Kong. And it may be worth sending the

Governor

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