FO371-46254 — Page 34

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the meantime of any surplus shipping remaining for coastwise and river traffic" in Kwangtung Province.

5. Reference paragraph 2(c). This condition should be reversed and you should say that while Admiral Harcourt must have first call on captured Japanese 11.T. and material to meet the needs of the Colony, any surplus after these needs have been met, will be handed over to the Chinese for use as suggested.

7.

Reference paragraph 2(f). Thile there is no objection to the use of a portion of captured weapons and equipment for the purpose proposed, you must make it clear that Admiral Harcourt will have the first call on this equipment for the needs of his military administration.

Circulation:

Foreign Office. First Sea Lord.

C. I. G. 3.

C. A. S.

S. of S. Dominions.

S. of S. Colonics.

Defence Office.

TOO 312340Z

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