CO129-564-10 Aeroplane assembly depot- proposed establishment 7-9-1937 - 14-1-1938 — Page 82

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(F 8440/31/10)

82

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she beguiled

The Assembly of Aeroplanes for China in Hong Kong.

The Chinese Government desire the Government of Hong

Kong to permit within the borders of the Colony the assembly

of aeroplanes, admittedly destined for military use, which

are being shipped thither. They are willing that the

machines should be flown to China without armaments, if this

will save the Colonial Government embarrassment. The

following considerations are relevant in deciding what answer

should be returned to the Chinese Government.

(1) In peace-time there is nothing to prevent the

transaction.

It can be regarded as probable that, if the

Chinese Government were suddenly during peace-time to order a

large number of aeroplanes and desired speedy delivery, they

would endeavour to make use of the technical facilities,

skilled labour etc. available in Hong Kong.

(2) If a state of war is in existence, it is the duty

of a neutral Government to prevent the departure from its

territory inter alia of aircraft which could, prior to their

delivery to the belligerent purchaser, be used for the

purpose of hostilities. (This, in effect, means that the

aircraft must not only leave without arms or ammunition but

also without any fittings or mountings).

(3) There is at present no formal state of war between

China and Japan, and in Mr. Fitzmaurice's opinion this leaves

us free to allow this type of transaction or not as we please,

and technically we might allow aircraft to fly off even fully

armed.

(4) In point of fact instructions were issued to Hong

Kong at the end of last month to "act as if a state of war

"were imminent" and later in the same message we said that

the