NO DISTRIBUTION.
Decypher.
Mr. Greenway (Chungking),
12th January, 1939.
D. Admiralty W/T 12th January, 1939. 4.45 p.m. 12th January, 1939.
R.
No. 14.
79
Addressed to Embassy Offices Shanghai No. 35 of January 12th. Your telegram No. 24.
As regards the central factory Pawley tells me that work is proceeding most satisfactorily and that Burma [sic] authorities
are being more than helpful.
He says however that as far as he is concerned the scheme for light plant at Hongkong is certainly not dead; and he would be very glad to go on with it if the Foreign Office objections
He has were withdrawn at any time in the not too distant future. two alternative schemes for Hongkong: (1) a plant purely for the assembly of machines for His Majesty's Government in connexion with the re-armament programme, advantages of this would be the centralisation of manufacture for the Far East: and great economy in construction charges in view of the low cost of labour. (2) A plant to provide equipment solely for Imperial Airways whose machines he says are lamentably out of date, slow and
unreliable.
He is flying to England at the end of January and will see
the Air Ministry about these plans.
Repeated to Foreign Office No. 14, Hongkong No. 10.