96
Enclosure No. 2.
3.
- 2 -
The application has now been renewed by
another firm of solicitors on behalf of the same group
of Chinese. A copy of the solicitors' letter
describing the project is enclosed and a request is made
in the last paragraph for a telegraphic reply as to
whether the project might be allowed to proceed.
4.
This application must, I think, be considered
together with that put forward by Mr. W.D. Pawley and
dealt with in the correspondence referred to in the first
paragraph of this despatch. If it were thought
desirable now to permit such a project to proceed I think
it would only be fair to give a further opportunity to
the earlier applicants. I feel, however, that this
whole subject needs careful consideration not merely
from the point of view of the existing war situation but
also with the object of securing the most economic
development of this activity if it is to be allowed to
develop at all here. I believe that it will eventually
be very desirable that a factory or factories engaging
in the assembly of aircraft should be established.
Apart from other advantages they should be a definite
help to the development of the air-port, to which they
are as natural an auxiliary as ship building yards are to
a great sea-port ; but I am inclined to think that such
a development requires some regulation and control and
that probably a limitation of the numbers of factories
would be desirable. There might, e. g., be one assembly
factory associated with British interests and one with
American.
5.
In addition to your decision on the particular
application now in question I should be grateful for