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complete the buildings and, during this time, the necessary machinery will be shipped from England and the United States

with the hope of commencing operations by the latter part of May

or early in June 1938.

The factory will be of the most modern type of

construction, reinforced concrete and steel with saw-tooth

roof, concrete floors, and equipped with the most modern aircraft

machinery obtainable. The project will cost approximately

£100,000 for building and machinery and will be capable of turning

out approximately 300 single-engined airplanes per year. It

should not be overlooked, moreover, that the establishment of a

factory of this type will create a field of employment to the natives of the Colony as it will employ approximately 2,000

people, possibly 2,500, with a foreign staff of some 30 to 35

technicians.

We do not feel that it will be necessary to construct

a power plant as we understand reasonable rates can be obtained

from the local power company.

We sincerely hope that this project will meet with the

approval of the Hong Kong Government and that we will be

authorised to proceed at an early date.

Respectfully yours,

(sd)

W. D. Pawley.

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