53
their letter the Board of Trade are concerned
with the respective extent of participation
of British and American interests in such
an undertaking and suggest that one combined
Anglo-American undertaking, which would be
just predominantly under British control,
would be more economical and more secure than
two competing undertakings. I think there
may be a lot in this, and I would suggest
referring to it in our reply to the Governor.
5. As to the actual reply to the
Governor on the question of general policy,
I suggest that, subject to G.D.'s obsons., we should confirm the previous statement
?
made in our telegram (No. 112), to the effect
that there is no objection to the setting up
of a factory in Hong Kong, but that for the
duration of the present hostilities permission
to export completed aircraft to China or
Japan cannot be given. Say that the matter
has been referred to the Air Ministry and the
Board of Trade for their obsons., that the
Air Ministry's reply is principally concerned
with the more one-sided question of strategy
and treats the matter as though the proposal
were to set up an aircraft factory in British
territory in the Far East, and therefore has
little bearing on the actual question of the
advantages of the eventual establishment of
and convey to
such a factory in Hong Kong:
the Governor the substance of the third
paragraph of the Board of Trade's reply at (131).
A.N. Galsworthy
13/12