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Group Captain Coryton stated that from the point of view

of imperial defence, the Air Ministry held the view that a

site in Burma would be preferable, as it would then be

secure in the event of us being involved in a war with

Japan. A factory at Hong Kong would soon cease to operate,

whereas with a site in Burma, production could be continued

and could be used to assist in meeting our own Far East

requirements. It would be necessary however, for the

Company to be formed with a predominant share of British

capital so that we could control its activities.

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