893.24/427

Memorandum Prepared in the Division of Far Eastern Affairs

Military supplies from abroad enter China principally by three routes: (a) Lanchow; (b) French Indochina; and (c) Hong Kong.

Lanchow. (Kansu).

A radio report just received from an American military observer who made a special trip to Lanchow gives information as follows:

Shipments of military supplies from Russia passing through Lanchow are estimated to average less than 25 tons daily. The material consists of aircraft supplies, including gasoline, bombs of various sizes up to approximately 1,500 pounds, machine guns and ammunition for artillery and small arms. During December, 1937, 15 anti-aircraft guns and a few searchlights were received. Six light tanks arrived this year but there have been no further shipments of artillery. A total of 300 airplanes of all types, which is believed to be the entire shipment expected, has already arrived at Lanchow. Trucks in use on this route have a capacity of three tons. They are guarded by armed Russians en route and by Chinese guards at halting points. From 120 to 150 truckloads of material are now arriving weekly. Strict secrecy on these shipments is being maintained and information is most difficult to secure.

It is estimated by officers of the War Department that the ammunition and aviation gasoline entering China by Lanchow is primarily for the use of the Russian equipment, such as airplanes, anti-aircraft guns and tanks shipped by the same route. The present flow of [Page 596] munitions is believed to be sufficient to maintain those weapons in action. If the tonnage capacity, as indicated above, of this route is utilized for general munitions, it is believed that the volume would be sufficient to supply the needs of only about three and a half divisions (45,000 to 55,000 men) engaged in military operations.

The American military observer who visited Lanchow has been directed by the War Department to forward more detailed information via air mail. This air mail report should reach Washington in approximately 2 weeks.83

French Indochina.

Military supplies entering China via French Indochina are shipped by two routes: (a) by rail to the Kwangsi border (Lungchow) and from there by motor direct to central China or to a transshipment point on the Canton–Hankow Railway; and (b) by rail to Yunnanfu.

A radio report just received from an American military observer who made a special trip to Lungchow (on the Kwangsi side of the Kwangsi–Indochina border) gives information as follows:

Since February 7 an embargo has been established on shipments by rail of munitions from other than French sources. After March 1 the embargo also included French material. While the French Colonial Ministry is reported to have authorized munitions shipments, the local Governor General is reluctant to permit their passage for fear of Japanese reprisals. The embargo does not apply to articles which can be classed as commercial. Under this liberal interpretation, airplane engines, engine parts, gasoline, oil and many other articles may be shipped. A highway from Dongang, on the railway in French Indochina, to Kweilin, capital of Kwangsi, via Nanning, able to take five-ton loads, is now complete. A hard surfaced road connects Don-gang with Haiphong. A water route is also open via Wuchow.

The American military observer who visited Lungchow has been directed by the War Department to forward more detailed information via air mail. This air mail report should reach Washington in approximately 2 weeks.84

With regard to the statement that since February 7 an embargo has been established on shipments by rail through French Indochina, the American Embassy at Paris telegraphed on April 2 that according to the French Foreign Office there had been no change in French policy which is to approve applications for shipments ordered prior to last August and started before October. The Embassy reported further that there had been some evasion of the French control and that other shipments which originated in French Indochina were not strictly subject to the control. The Embassy stated that because of [Page 597] France’s own military needs the French munitions supply to China had been considerably diminished.

With regard to Yunnanfu, the American Consul at that place reported under date January 29 that there had arrived at Yunnanfu a shipment of war materials consisting of 32 light tanks, 6 or 8 airplanes, and 1800 tons of explosives, mostly bombs. The Consul reported further that he understood that another shipment of 1500 tons was then at Haiphong awaiting transportation to Yunnanfu.

Hong Kong.

It has recently been learned that the Government of Hong Kong is forwarding fortnightly to London data in regard to war material passing through Hong Kong. The American Embassy at London has been asked by telegraph to request that the British Government supply it with these data fortnightly or monthly. No reply has as yet been received from the Embassy at London.

Under date February 25 the American Consul General at Hong Kong reported that, based on first-hand observation, the traffic in war materials via Hong Kong appeared to be substantial and continuous. The Consul General forwarded a report by the Hong Kong correspondent of a Japanese newspaper giving a list of supplies reported to have reached China through Hong Kong between February 1 and February 15. The Consul General expressed the opinion that these figures were not greatly exaggerated. The figures are as follows:

From America: 15 cases of machine guns for aeroplanes, 500 tons of gunpowder and other explosives.
From Britain: 27 aeroplanes, 700 tons of gunpowder and other explosives, 250 tons of quasi-explosives, 26 tanks, 500 cases of sulphuric acid, 2 motor lorries, 15 anti-aircraft guns, 1,500 tons of bridge material, 100 tons of railway material, 200 tons of other war supplies.
From Denmark: 6 cases of machine guns for aeroplanes, 2,000 tons of quasi-explosives.
From Germany: 20 motor lorries, 200 tons of railway material, 100 tons of other war supplies.
From Holland: 1,500 tons of quasi-explosives, 150 motor lorries, 100 tons of bridge material, 1,000 tons of railway material, 400 tons of bombs.
From Italy: 5,000 tons of ammunition, 100 cases of sulphuric acid, 300 tons of other war supplies.
From Norway: 25 cases of machine guns, 1,000 cases of sulphuric acid, 115 motor lorries, 500 tons of bridge material, 50 tons of barbed wire.

As further indicative of the volume of traffic through Hong Kong of military supplies and related materials, there is enclosed a list of certain exports to China from Hong Kong for the period November [Page 598] 1937 to January 1938, inclusive, as supplied by Hong Kong port authorities.85

Burma.

A further route which may become of importance in connection with the supply of arms and munitions to China is from Rangoon to Lashio, railhead in Burma, and thence by motor truck to Yunnan. A motor highway, approximately 550 kilometers in length, is now being built from the Burma border to Tali, a city in western Yunnan from which highways lead to central China and Szechwan via Yunnanfu and Kweichow. Recent reports from the Consulate at Rangoon indicate that some 200,000 coolies are working on this road and that strict orders have been issued for its completion by May. It is believed, however, that even if a road of some sort is completed by that time it will not be practicable for use by motor vehicles during the rainy season from June to November. It is also believed that the potential importance of this route has been exaggerated in the press, as the geographical difficulties in the way of construction and maintenance are enormous.

The non-completion of a motor road connecting Burma and Yunnanfu does not, of course preclude the possibility that small arms and ammunition may be brought in by pack animals over the route to be followed by the road or over the main caravan routes from Bhamo and Myitkyina. It would probably take in the neighborhood of 60 days to transport goods from Rangoon to central China over either of these routes.

Chinese Arsenals.

Chinese Government arsenals can manufacture limited quantities of small arms of all types, machine guns, trench mortars, light artillery, and ammunition for these weapons. Hand grenades and airplane bombs up to 300 pounds are also manufactured. China must of course import certain raw materials to complete the manufacture of these munitions.

Conclusion.

The information so far received is not sufficiently comprehensive to afford a basis for making an estimate as to the volume of military supplies entering China from abroad. Upon receipt of the air mail reports from the American military observers who visited Lanchow and Lungchow and of an air mail report expected from the Consul at Rangoon, and if the British Government furnishes the information which has been requested of it in regard to the transit through Hong Kong of military supplies, there may be available data on the basis of which an estimate can be made.

  1. Dated April 16, not printed.
  2. Dated April 15, not printed.
  3. Under date of February 12, not printed.