CO129-582-22 Visit of Sir Stafford Cripps to China 13-12-1939 - 4-7-1940 — Page 8

C 40756/403

Confidential

A

D.O.T

R83

With Mr. Edgcumbe's compliments.

睡

8

V ZA DUW FOR THE PREIGN GIRINA.

epartment of verseas Trade present their compliments to the Foreign office and desire to offer, with apologies for long delay, the follo ing observations with regard to the report by Eir Etafford rippe on the position in China, which formas the enclosure in Foreign office letter No. 7.2998/2998/17 of May 22nd.

2.

While other Departments would appear to be more directly concerned with the recommendations ande at the end of Bir Stafford Cripps' report, this Department is impressed by the argument advanced in paragraph 88 of the report, which points out that the future relations of china with foreigners and foreign dovernment will to a great extent be determined by what those Governments or nationale now do to help the

hinere in their hour of need, and that it will be uselesF for those ho

no do not help Chine no to expect any particular advantages or opportunities in the future when the time comes for extensive and wholesale reconstruction. At the same time, however, world conditi:ne have altered so rapidly during the past for monthe, and continue to alter so rapidly, that it is fully understood that such assistance as His Majerty's Government might in other circumftander wish to render to China may have to be withheld owing to other goneiderations.

3.

This is especially the case in regard to the Bursa- Yunnan Railway the construction of shich would undoubtedly be anosticy.rtant a most imp rtant factor in the maintenance of Chinese resistance; this Department fully shares the belief expressed by Sir Stafford Cripps in paragraph 74 of the report that the most effective of all the single acts that could be done at this time to improve ino-Briti≥h relations would be a decision to go forward with the construction of the Bursa- Yunnan Peilway. But for various rearons no progress in this direction, 60 far as the United Kingdom is concerned, has been possible, partly because of political difficulties encountered 1n Burza artly because British financial interests are not prepared to provide the necessary funds without government

arrietsrce.