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have recently guaranteed a fund of £5 million for

stabilising the Chinese currency and they are prepared

to give export credit facilities in suitable cases to

the extent of some £3 million.

If a European war broke out while the Sino-Japanese

conflict was still in progress our actions in the

Far East would depend on the attitude adopted by Japan.

So long as she was neutral we should presumably want

to keep her so, but if Japan became a declared enemy

our arrangements with the Chinese Government would

probably be limited to supplying a certain amount of

money and munitions in return for which we should want

a labour corps and some raw materials.

arrangements could only be made in the light of the

conditions existing at the time and it would be useless

to enter into a detailed discussi

Such

of the subject now.

rend

Action (cont.) Despatch to Paris

No. 892 of 14.4.39.

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28th March 1939.

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