علام

110.95

NO SECRET (2)

Copies to B.A. Shanghai No. 34.

B. A. Tokyo No. 48.

GOVERNMENT HOUSE,

HONG KONG,

19th September, 1938.

q

Sir,

I have the honour to refer to previous

correspondence terminating with your secret telegram No. 123 of 5th July, 1938, regarding a proposal for a factory for the assemblage in Hong Kong of aeroplanes for export, and to inform you that I have since received another application to set up a similar factory

here.

2.

This further application was first put forward last month by a solicitor on behalf of a company, which it is proposed to form under the style of "The China Aircraft Company, Limited"; and I enclose for your information a copy of a memorandum which was submitted

describing the objects of the Company.

It was added

that the units and all component parts of the aeroplanes

would be imported from England, and that no fighting

aircraft of any description would be assembled or made. To this application the Government replied that at the present time it was not possible to permit the erection

of an aircraft factory in Hong Kong, but that further consideration would be given to the application, should

it be renewed at the termination of hostilities between

China and Japan.

Cpyto Donaldson 113.

BIT

Pro

O'M

A.M

Adaty

Enclosure

Chill

(sin

THE RIGHT HONOURABLE

MALCOLM MACDONALD, M.P.,

&C.,

&C., &c.

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