893.24/371
Memorandum Prepared in the Division of Far Eastern Affairs
Very little definite information is available in regard to arms and munitions entering China during recent months. However, an evaluation of such data as are available makes possible the following general statements.
Considerable quantities of war materials have been and are entering China by three routes. In order of probable importance these are Hong Kong, Lanchow via Sinkiang, and French Indochina. [Page 592] Germany, Russia, Italy, and France appear to be supplying the largest quantities and smaller amounts are of Belgian, Danish, Czechoslovakian, American, and Swedish origin.
A more detailed summary of the information on file follows.
Routes of Entry
Possible routes still available to China for the import of war materials are: (1) Alma Ata or Serglopol (on the Turksib Railway) by highway or air to Urumchi to Lanchow; (2) Semipalitinsk or Irkutsk by highway or air to Uliassutai to Lanchow; (3) Verkhne–Udinsk by rail to Urga and thence by highway or air to Lanchow. From Lanchow a highway leads to central China via Sian. (4) Hong Kong by rail, highway, or steamer to Canton and from there to central China by rail. (5) Haiphong (French Indochina) by rail to Yunnanfu and thence by highway to central China or from Haiphong by rail to Langson and from there by highway to Lungchow (Kwangsi), Nanning, Kweilin, and central China. (6) Another possible route which apparently has been used very little, if at all, is from Rangoon by rail to Myitkyina or Lashio, or by river steamer to Bhamo and thence by mule caravan to Tailfu, 440 kilometers west of Yunnanfu, from which city there are motor roads to central China. This route is, of course, impractical for anything but small arms and ammunition and is slow (60 days or more from Rangoon to central China). (7) A few supplies are reported to have entered by way of Macao (thence by highway to Canton) and (8) Kwangchowwan from where they are shipped by highway to a redistribution point on the West River.
Countries of Origin
Licenses issued for the export of arms and munitions from the United States to China for the periods indicated were as follows:
| December 1937 | $290,618.27 |
| January 1938 | 380,083.50 |
| February 1938 | 1,918,613.83 |
| March 1–14, 1938 | 76,002.95 |
| $2,665,318.55 |
Applications now pending which may be acted upon favorably in the near future total only $104,430.00. The value of American arms (this term is used in a broad sense and includes military equipment and munitions of war) entering China may actually be higher than these figures would indicate, as Hong Kong has reported that there are believed to be arms agents there selling American arms originally exported to South America but refused by the consignees there. Where these arms are stored at present is unknown. There are also at Hong Kong rumors that American arms are arriving there via Australia and Manila.
[Page 593]Official British figures (communicated to the Ambassador at Tokyo about February 1) show that of the war materials passing through Hong Kong 62% are of German origin, 21% Italian, 12% French, 3% British, and the remaining 2% American and Belgian. Although there is little information in regard to the origin of arms entering via Indochina, it appears probable that they are almost entirely of French, Belgian, and possibly Czechoslovakian manufacture. Assuming that all supplies entering via Lanchow are Russian, the countries supplying arms to China may be ranked roughly as follows: Germany or Russia, Italy or France, Belgium, Great Britain, Czechoslovakia, United States, Sweden, Denmark. A large order for automatic weapons including 7.92 mm. machine guns, anti-aircraft and anti-tank guns, and 20 mm. automatic cannon has been placed with the Danish Industrial Syndicate. The size of this order is indicated by the fact that seven Chinese officers have been sent to the factory in connection therewith. These supplies are to be shipped by sea from Hamburg, but it is not known whether deliveries have yet begun. The absence of Denmark from the British list of countries of origin mentioned above would seem to indicate that no part of the order had arrived at the time that list was compiled, a date which is not definitely known but which is probably near the first of the present year. There have been several definite figures mentioned in reports but it is not believed that listing them would greatly help in understanding the situation as they do not pretend to be accurate, refer to different periods, and bear no indication as to the type of supplies which they include.
[Here follow sections on Hong Kong, Lanchow, and Indochina.]