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Mr. Bigg asked whether the projected factory could
export parts of aircraft unassembled. Group Captain Coryton
replied that there would be no point in this. The factory
would import parts and assemble them in Hong Kong, as to
set up a plant capable of manufacturing aeroplane would
take two years at least.
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Mr. Fitzmaurice suggested that the reply to the
promoters of the scheme was that there was no objection to
the factory being set up, but that it could not be permitted
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to export/aircraft to China or Japan as long as hostilities
lasted.
Group Captain Coryton stated that from the Air
Ministry point of view Burma offered a very much better
site as being in a much securer position in case this
country should be involved in war.
Mr. Cowell asked 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 there was no legal war, but it was
pointed out that the Cabinet decision, as drafted, applied
to all British territory. Mr. Fitzmaurice suggested that
as the project upon which that decision was taken applied
to Hong Kong alone 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. Donalason said that
the Burma Government would scarcely be concerned eitner 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 far as
Hong Kong