CO129-552-6 Traffic of arms to China 2-1-1935 - 27-12-1935 — Page 98

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mentioned; those on the Part Publication list may be

described in general outline, although not in detail, and

firms are permitted to make tentative approaches to foreign

powers regarding the sale of these aircraft and engines

abroad. Those on the Open List can, in general, be freely

sold abroad but the prior consent of the Air Ministry is

required for the sale of manufacturing. rights for their

construction in foreign countries.

4. The principles governing the transfer from one list to

another are as follows:

Aircraft.

Engines.

The Secret stage lasts until the aircraft makes its first flight, the Part Publication stage until the first production order is given by the Royal Air Force, or until the Department indicates that it has no further interest in the type.

The Secret stage lasts until the engine has appeared

in public (in an aircraft or otherwise) or has passed a full Service Type Test; the Part Publication stage until the engine is in production or is no longer of interest to the Service.

5. The lists are revised every quarter. They include

aircraft and engines produced by firms on their own initiative ("Private Ventures") as well as those directly ordered by the

Air Ministry.

6.

When an application for concurrence in a possible

foreign order reaches the Air Ministry, it is considered from

the following points of view:-

(a) Secrecy and effect on our retaining a lead in new

types.

(b) Effect on production orders for the Department

-

orders

are only allowed to be accepted provided the needs of

the Royal Air Force are not prejudiced.

(c) International situation and any embargoes which may

be in force or in contemplation.

In accordance with these considerations the firm is

informed that it may or may not accept the order, or that it

may accept it subject to restrictions as regards the date of

delivery or on such other conditions as may seem necessary.

This system has worked admirably so far, and so long as the firms

engaged in the production of military aircraft and engines look

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