FO371-23514 — Page 314

Page 314

Page 314

141

It might also be desirable to insert some reference to the

need for the Chinese Embassy to arrange with the Export

Licensing Department for exporters' applications to that

Department to be accompanied by documentary evidence that the

orders are for the Chinese Government. Possibly, however,

such evidence is automatically present under the export credit

machinery. The arrangements suggested to the French Embassy

are that they should supply the firms to whom they give orders

either with a duplicate copy stamped by the Embassy of the

authorisation from the appropriate Supply or Service Department,

or else with a certificate signed by the Embassy stating that

the order is for the French Government, and that the competent

Department here has been consulted (giving their reference number),

or has not been consulted.

Quite recently Lord Riverdale asked Overton whether he

could give any idea of what would be the position of the

Sheffield manufacturers of certain special steels who had

received orders from the Chinese Government. The steels

required were of a special kind, and if the manufacturers

covered their raw material requirements, they were afraid either

that the Supply Department might prevent them completing the

order and require them to carry out other work which did not

require those materials, or else that owing to the danger of

interception export licences for the finished products might be

refused. Lord Riverdale has as yet had only a non-committal

reply.

I am sending a copy of this letter to Bewley, Wilkinson

(Supply), Bankes-Amery, Stirling (M.E.W.), Bard (Air Ministry),

Rear Admiral Taylor (Admiralty) and to T.A. Smith (War Office), so

that we can settle this question at the next meeting of the

Export Licensing Committee, (to-morrow at 5.30 p.m. at the

Board of Trade).

Yours sincerely,

(Sgd) R.J. SHACKLE.

Page 314

Page 314

Page 314