693.119/303

The British Chargé (Lindsay) to the Secretary of State

No. 88

Sir: I have the honour to inform you that His Majesty’s Chargé d’Affaires at Tokio has reported to His Majesty’s Government that the Japanese Ambassador at Rome has been instructed to act with his colleagues in drawing the attention of the Italian Government to the regulations respecting contracts for the importation of arms into China.

The Japanese Government point out that they have faithfully observed the agreement not to import arms or aeroplanes into China and that they have since February, 1919, prohibited the export to China even of arms previously contracted for despite the representations of Japanese firms who have thereby suffered losses and have been injured in their credit with the Chinese authorities.

The Japanese Government inquire if it is the intention to condone the action of the Italians in importing arms and the Chinese Customs in allowing them to be imported, or to prevent future deliveries. If so they desire permit for the export and delivery to Chinese Military authorities of arms contracted for prior to the agreement against the sale of arms to China in view (1) of the fact that these Japanese contracts differ essentially from the Italian contracts in that the latter date from after the agreement, (2) of repeated requests of the Chinese and (3) of the “unspeakable hardships” inflicted on the merchants concerned. The Japanese Government add that delivery would be confined to the portion originally contracted for, and if the Chinese agree, there is no objection to a suitable method of control to prevent the use of the arms before the establishment of an understanding between the North and South.

The Japanese Government also drew the attention of His Majesty’s Government to the contract for aeroplanes entered into by Messrs. Vickers which the Japanese Government find it difficult to believe are necessarily for commercial use only as stated by His Majesty’s Government.

As a matter of fact the Vimy aeroplanes being sent to China by Messrs. Vickers are strictly commercial machines and are arranged for passenger reasons and mail carrying. To fit them for machine [Page 739] guns or bombs would, even if it were possible at all to do so, involve more reconstruction than could be carried out in China. This has been pointed out to the Japanese Government and as stated below the explanation was accepted by the Japanese Minister at Peking.

His Majesty’s Government have informed the Japanese Government in reply that there is no question whatever of condoning the past action of the Italians and Chinese, and that His Majesty’s Government are therefore gravely concerned at the proposal of the Japanese Government to allow the export to China of munitions contracted for by Japanese firms before the date of the resolution of the Powers to prohibit the import of arms into China until the establishment of a government whose authority is recognised throughout the country. From information received by His Majesty’s Government it may be assumed that the Japanese contracts are enormous and the delivery of the arms to China at the present time when the Powers interested are agreed in principle on the urgent necessity of disbandment and of the resumption of negotiations between North and South would in the opinion of His Majesty’s Government be a little short of disastrous, and would render nugatory the whole policy of the Consortium. Moreover, the justification of their proposed action put forward by the Japanese cannot be admitted.

The Japanese Government have themselves only in December last joined in the representations to the Italian Government to stop the delivery of any further arms, only a portion of which has actually been delivered in China, and to request an assurance that their previous reservation regarding arms previously contracted for will be withdrawn. It is to be hoped this representation will be successful. As regards the Vickers aeroplane contract the Japanese Minister in Peking expressed himself as satisfied with the explanations given him by His Majesty’s Minister as set forth above, while similar explanations were given in a memorandum to the Japanese Embassy in London. It may be added that His Majesty’s Government did not consent to the Vickers contract until they were satisfied that these aeroplanes were not intended and could not be used for other than bona fide commercial purposes.

A request of a British firm to deliver to the Canton Government a consignment of munitions valued at $500,000.00 which have been detained at Hongkong since June 1918 with considerable loss to the British firm although the contract was made before the North and the South were in open conflict, has been consistently refused by His Majesty’s Government who have further disallowed the sale to China of certain dismantled warships. While, therefore, His Majesty’s Government would financially be the gainers by a reversion of the present policy, they are imbued with its absolute necessity [Page 740] and His Majesty’s Chargé d’Affaires at Tokio who was instructed to lay the views of His Majesty’s Government before the Japanese Government and express their most earnest hope that the Japanese Government will adhere to the policy agreed upon among the Powers, a policy which His Majesty’s Government readily admit has so far been carried out with the utmost good faith.

I have [etc.]

R. C. Lindsay