2.

66

security of the French Railway line from Haiphong to

Yunnanfu was not absolute.

Furthermore although there is

a comparatively good road from Hanoi up to Lookay near the

Indo-China frontier, there is at present no road from

Lookay up to Yunnanfu. The Chinese are said at present

to be busy constructing this road, but it is not likely

to be suitable for heavy transport for some considerable time.

4. Mr. Gourlie was sent to examine the possibilities

of the re-erection of his factory near the Burma frontier,

since it is thought that a factory in such a position

would be completely free from the attention of Japanese

aeroplanes for the reasons already mentioned in item (3)

of my note of 10th November, 1938. Mr. Gourlie apparently

arrived in Rangoon on the 29th October and was given a

letter of introduction through the Irrawaddy Flotilla Company

via Mr. Wise to me at Maymyo. He did not however stop

at Maymyo but went on to Lashio where he saw Mr. Shaw

and subsequently to Bhamo where he saw Mr. Kingsley.

He got into touch with the Chinese Sawbwa of Mengmao

at Muse and with his assistance bicycled over a considerable

area on the Chinese side of the frontier looking for a site.

He eventually picked on a site, which he considered to be

suitable, slightly west of Loiwing which will be seen

on sheet 93 Square B 2 of the Survey of India map of

E NE

the Bhamo District 1909 1910. This site is about 22

miles east of the Frontier Force military post at Panghkam

in the Bhamo District. Panghkam is itself about 4 miles

from Manwing which is on the Bhamo-Shweli Bridge road

and Panghkam and Manwing are connected by a road which is

usable by motor traffic. Mr. Gourlie, if his scheme

develops, is prepared to contribute to the upkeep of this

road which connects Manwing with the Frontier Force post

to enable it to carry the material which is likely to be

required/

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