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2. In conversation I gathered from Mr.Gourlie that

he represents the Inter-Continent Corporation which is known

in Hongkong as the Inter-Continent China Corporation.

This

Corporation manufactures Curtis Wright aeroplanes under the

name of the Central Aircraft Manufacturing Company which is

registered in New York. This Company has been building

aeroplanes in China for the last six years, first in

Hanchow which is about 100 miles south-west of Shanghai, and

subsequently in Hankow. Manufacture has also recently been

going on in Hengchowfu which is about 100 miles south-west

of Changshu and is also known as Henyeng. The normal output

of the Company in China was according to Mr.Gourlie 60 to

70 machines a month. The controlling interest in the

Company is American, but the Company has close associations

with the British Sperry Company which provides material

required in connection with landing grounds etc.

3.

When Hankow was seriously threatened, Mr. Gourlie's

Company removed the greater part of its machinery to Hongkong

and despatched its specialist staff consisting of some

500 expert Chinese and 20 white personnel to Yunnanfu

leaving the empty buildings in Hankow. It was at first

thought that the Company would transfer its seat of operations

to Yunnanfu and, of the machinery which had been removed

to Hongkong, some 200 tons were transferred to Haiphong where

they are at present. It was subsequently decided that

Yunnanfu would be an unsuitable place for the re-erection

of the aeroplane factory, partly because Yunnanfu has

already been subjected to two air raids and partly because

of some doubt as to the transport facilities between

Haiphong and Yunnanfu.

The opinion of Mr. Gourlie, supported

to what extent I do not know by his seniors, was that the

security/

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