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the Air Ministry point of view Buraa offered a very much better site-as being in a much securer position in case this country should be involved in war.
Mr. Cowell aaked whether there would be any objection to the factory being set up there and to
exporting aircraft to China. Mr. Fitzmaurice
replied that there would be no legal objection as
statê M
there was no legal war, but it was pointed out that the Cabinet decision, se drafted, applied to all British territory. Kr. Fitzmaurice suggested that as the project upon which that decision was taken applied to Hong Kong slone we might return to the Cabinet for a decision as to whether the prohibition applied to that Colony alone or to all British
territory.
In reply to a question, Mr. Donaldson said that the Burma Government would scareely be concerned either one way or the other if it were decided to set up the factory in Burma. It was a purely
commercial concern, and no Government permission would be required except for the acquisition of land.
It was felt that the defence position as
fer as Hong Kong rae concerned should be cleared up. Captain Bourne said that the project had the support of the War Office. It was felt that Burma would be a better site on strategic grounds as being further away from attack, but that there would be no objection on their part to setting up a factory in
Hong Kong, i.e. that it would be an asset there and not a liability.
It was generally agreed by the
representatives