rinetcen-twentieths of this Government's revenues being expended for military purposes and for interest on foreign foun" ‘There was a cesible shambles of human society and comple focal and moral chaos, a source of constant horror an pity in fhe betterinformed circles of the outside world —and a happy Tbunting-zround for the agents of the munitions and powder ‘companies in the West who worked on the comfortable principle that it was “aot thei job to create peace”. Here fe Lord McGowan again to throw more light on the mental attitude of the armament manufacturer in his extensive Business with the Par Bastern war mongers. After admitting that TCL. supplied Japan with certain specialities (some of which ‘were used in dhe™manufactore of poison gas) and that this material was for use in the invasion of Manchuria, Sir Harry was brought foadmitting that he would continue to sell such material unless stopped by the Government even though their customer had been publiey declared the aggressor. (Chemical shipments to Japan over the peried 1931-1993 included 1 ton of chlorine; 2,069 tons of ammonium nitrate; and 34 tors of ethylene glyco All ean be wed in the production of poton gx.) ‘The Japanese invaded Manchuria in 1931, thereby violating ‘wo treaties to which Britain was a party, the Kellogg Pact ant ‘the Nine Power Treaty. Yet at the time ofthe attack om Man cchuria the British Government refused to join with the US. ‘Government in a protest to Japan, Ata League meeting in 1932, ‘Lord Lytton's Commission’of Inquiry reported that Japen was the agurestor, But Sir John Simon's speech was esficiont to way the meeting ia Japan's favour, As Me, Matwuoko said to group ‘of newspaper men in the lobby after the sesion: “What I have been trying to say in my bad English for the last ten days, Sir ‘John Simon has said in his excellent English fn half an howe” | Soon afterwards, Matsuoka trotted off to England, where, ‘naturally enough, he became the honoured guest of Metropolita: Vickers and was taken on a tour oftheir works and those of .C.1. ‘We lave recorded earlier that Sir Jobn Simon held shares in the LG. His draws to the matter removes any suggestion that he was animated by personal interests whea he supported Japa’ case at the Teague. Nevertheless, the general principle that these who direct national policy should not be associated with industrial conceras dlosely related to war remains valid, Mr. W. Arnold-Forster expressed ic tothe Royal Commision when he sid that "ie eae not be healthy for the repute of Government it is known that Gabinet Ministers may be in a postion to benefit personaly, however slightly, ftom the breakdown of disirmament negotiae fions and ffom the placing of orders with armament fms by thelr colleagues who speak for the fighting services. «+ « T venture to suggest sha there are objections toa system in which two interests, the one public and the other private, may be 90 clotelyintersines, No doubt Matsuoks's English hosts wore as distrested as their American counterparts a¢ the outhreak of war between their old fustomess China and Japan. ‘This concern was reflected im a Jeviervtten by one du Pont oficial to another and produced avthe Nye Heari “Please advise what stops have been taken to secure military sales business in the unhappy event of hostilities between China sod Japan.” (P. W. Pickard, Vice-President of du Pont) ‘The Brtsh agents were ss concerned, and as busy, for stilar yeasons—I.C. (Metals), Ltd, manufacturing most of the ‘munitions for Japan during 1gya, In that year the Board of ‘Trade issued fory-100 export licences for the shipment of war ‘materials to Japan and thirty-one for China, Under thoee permits Japan received 5,961,450 earteidges, ten howitzers or mortars, "40 machine-guis and £160,000 worth of old military equipe mont. Thi was the year of the Disarmament Confrence! Other riomiers of the Govérnment holding shares in 1.C.1, were Mr Neville ad Mr, Austen Chamberlain, LLangely as the result of pressure of public opinion, the Betsh Government ceided, in Februnty, 199, to rant no new licences ‘utsce the then existing contracts for artns exports tothe heliger ‘ent countries. This embargo had previously been discussed in the