The Minister in China (Johnson) to the Secretary of State

No. 1340

Sir: Referring to despatch No. 7 of December 9, 1931, to this Legation from the Consul at Hongkong,23 copies of which were forwarded to the Department by Mr. Putnam, concerning the sale of military supplies to the Canton Government, I have the honor to suggest that the difficulties encountered by American firms in the sale of aeroplanes in South China, as pointed out in the despatch under reference, will probably disappear with the present reorganization of the National Government.

Should a political reconciliation not be effected between the various Chinese factions it would appear unjust for us to handicap our merchants at Canton, as has apparently been the case in the past, in [Page 1028] view of the fact that the British Government is evidently according the same treatment to the Government at Canton as to that at Nanking in the matter of the sale of munitions of war.

Respectfully yours,

Nelson Trusler Johnson
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