The latest statistics bolster this contention and indicate that China's Imports of French war materials are the smallest when compared to those other nations, War supplies exported from France to China during 1937 totalled 2,800,000 Gold Units, representing an amount, equal to British exports in the same period. "The United States and Germany, however, exported—6,200,000 and_ 7,000,000 Gold Units worth of materials that could be used in war manufacture, Furthermore, 60 per cent. of the} supplies going into China 1887 went in via. Hongkon Franco-Japanese Pact Finally, diplomats recall the! Franco-Japanese Agreement of 1907, Which France has always respected.
This accord provides. that North China is reserved for Japan's commercial influence and that France is not opposed to Japanese penetration in that area. It also provides, however, that Chinese districts along the Indo-Chinese borders should be reserved for French influence. creasingly lending colour to the rumours of a secret agreement between France and China."
The journals referred again to reports that General Chiang Kal-shek was. offering France railway and mining concessions ju the south-west ern provinees, including Yunnan, for French assistance, The papers quoted other unverified reports fo the effect that nogotiations are under way between France and China "For the transporta~ tion of arms and ammunition on French warships from French Indo France is determined to remain faithful to the spirit and law of this agreement, the same diplomats declare.
They emphasize particularly that last December, France prohibited the (.ansit through Indo-China of any arms or ammunition, whether French for foreign, apart from those cargoes which China's Government had ordered before the conflict. They also point out, in conclusion, that France was the sole Power which took such action, even though a state of war has never been declared—
"In case the French authorities of Indo-China persist in extending: military assistance to the Chiang Kaishek administration," the press said, quoting the observers again, "and if they ce-operate in the military' {installations on Hainan Island, we fear the situation there will inevit-
Text read from the printed page and cleaned; old type leaves the occasional error.