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"to the counter-measures which Japan might take against
"assembled aircraft as soon as they left British
"territory
The upshot must be that any aircraft
'reaching Hong Kong in parts and destined for China will
"have to be forwarded in unassembled condition by such
'means of transport as may be available."
5. It is clear from the Cabinet decision and the
wording of the telegram which was laid before the Cabinet at
the time when it made its decision that in each case where
the words British territory were used Hong Kong territory
was meant. Thus it is not accurate to say that the Cabinet
have forbidden the export of assembled aircraft from any
British territory. The second enquiry which the Colonial
Office desired should be made of the Cabinet therefore does
not arise.
6. As regards the question whether the Cabinet
decision to prohibit the export of completed aircraft to
China and Japan from Hong Kong is to be regarded as equally
applicable to the new project under consideration for the
establishment by private interests of a factory for the
assembly and eventually the manufacture of aircraft, and as
precluding while hostilities last, the export of completed
aircraft to either of the belligerents, the only inherent
difference between the suggestion on which the Cabinet
decision was made and the present one is that in the first
case the assembly plant was to be controlled and run by the
Chinese Government, and in this case it is to be controlled
and run by an Anglo-American group. The difference between
the then situation and that now obtaining is that Japan is
now considered less likely to declare war on China (such