Copy

(763/80/10)

Confidential.

FOREIGN OFFICE, S.W.1.

14th February, 1940.

6/5

58

5.

Dear Gent,

We have given further careful consideration to the

views expressed in our letter No.F 80/80/10, of the 8th

January, in the light of Air Ministry letter No.S.43698/S.6,

of the 31st January, on the subject of the assembly of

four commercial transport planes in Hong Kong for delivery

to the Chinese Government. It still seems to us, however,

that the Inter-Continent Corporation's request should not

be granted.

2.

As you will remember, the Cabinet decided on the

17th November, 1937, not to entertain the Chinese

Government's suggestion "that the Government of Hong Kong

"should allow the assembly within the territory of the

"Colony of aircraft shipped there in parts and that such

"aircraft, when assembled, should be flown from Hong Kong

"to Chinese territory". It was then agreed that aircraft

reaching Hong Kong in parts and destined for China should

be forwarded in unassembled condition by such means of

transport as are available. This decision was reaffirmed

in regard to Burma in January 1939.

3.

If, therefore, you wish to press the question, it

would be necessary to make a submission to the Cabinet to

review the matter. This we should be quite prepared to do,

but in view of our present rather delicate relations with

Japan, we feel that the Cabinet would be most reluctant

to reverse the previous decision, particularly as nothing

has occurred to justify a reversal of this decision.

I am sending a similar letter to Reynolds, at

the Air Ministry.

4.

Yours sincerely,

(Signed) R.G. HOWE.

E.J.Gent, Esq. D.S.O., 0.B.E.,

Colonial Office.

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