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Enclosure No.3.

Enclosure No.4.

the present Sino-Japanese conflict continued.

It would,

I think, be desirable that this Government should have at all times controlling powers over the types of machines to

be erected at such a factory as this should one come

into being.

5.

The General Officer Commanding the British Troops in Chim opposed the scheme from the point of view

of defence. I attach a memorandum by General Bartholomew

stating the grounds of his objections. It will be noted

that the site at present under consideration is regarded

by him as less objectionable, indeed the attitude now taken

towards the scheme is one of warning rather than definite

opposition.

6.

Lastly, I enclose a minute in which the Marshal

of the Royal Air Force was good enough to express his

views of the project. This calls for no comment on my

part.

7. From the Colony's point of view, apart from any question of defence, I consider that the proposal is

certainly one to be commended. Such a factory would

improve trade and bring employment: and it would be of

great value to local flying. It may, I think, be

assumed that sooner or later the manufacture or assembly

of aircraft will be undertaken in this part of the

world, in which case it is highly desirable that British

capital should get an early footing.

8.

I shall be grateful if the various issues

raised by the project may have early consideration in

order to enable me to send a reply to the applicants.

understand from Mr. Dodwell that it has already been

I

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