893.113/1310: Telegram

The Consul General at Nanking (Peck) to the Acting Secretary of State

Information American Minister, Peiping.

42. My telegram 41, July 21, 7 p.m.

On July 21, 10 p.m. I received aide-mémoire from the Chinese Foreign Office regarding same planes. Information same as that given me by Soong but request for prohibition of export is based on regulations for the transportation of war materials (see Foreign Office note of February 11, 1930, paragraph No. 2.9). Referring to last part of my telegram, I have asked acting British Consul General what measures Hong Kong authorities are taking to prevent war materials from reaching Canton and he tells me the British Foreign Office has ruled the British authorities are prohibited under terms of Barcelona Convention from interfering with a cargo passing through Hong Kong under through bill of lading consigned to Canton, but may and should prevent exportation to Canton from Hong Kong of war materials consigned to Hong Kong and resold there. Chinese Foreign Office has been so informed. British Consul General remarked parenthetically that Hong Kong has its own peculiar difficulties and gets into difficulties whatever course it pursues. I am unable to find in this office copy of the convention referred to.
McConnell, Vice President of the United Aircraft Export Corporation tells me he gravely doubts whether Gale and Company sold these planes as alleged. Gale represents both United Aircraft Export and Detroit Aircraft Corporation, holding company of Lockheed Aircraft Company, and recently informed McConnell he would not deal with Canton for this would jeopardize Nanking business. McConnell thinks present deal probably concluded by some other agent of Detroit Aircraft—perhaps Bert Hall.
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