CO129-571-15 Sino-Japanese War- manufacture and import of aircraft to China 18-1-1938 - 5-1-1939 — Page 103

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licence for primary training and also, as and when the

present conditions in China alter, for club flying.

As we have pointed out above, Mr. Wen Lin Tschen

has already been promised a substantial initial order.

The machines which it is intended to build will be

powered with British engines of between 80 and 150 horse

power and no more; they will therefore be of no use as

military machines and we would with deference suggest that

having regard to the above intention a permit to erect a

factory and test the machines in question at Kai Tak cannot in any way derogate from the strict neutrality which it is the policy of His Majesty's Government to follow in the

present Sino-Japanese troubles.

We would further emphasise that the very fact that

the organizers of the proposed Company are Chinese will be

of inestimable value to re-introduce to the Chinese market

British machines and will be a direct means of inculcating

into the minds of pupils the value and capabilities of British

aircraft, besides giving further employment in this Colony

and to manufacturers of British aircraft and their accessories

Having regard to the above, we should esteem it a

great favour if the above application could be forwarded to

His Majesty's Secretary of State for the Colonies with a

view to his granting the necessary consent.

Needless to say, our clients would willingly agree

to any form of Government supervision or inspection of the

factory which may be reasonably required. It is of course

essential that facilities should be given to the Company to

test fly its machines at Kai Tak Aerodrome but we presume that if the permission of His Majesty's Secretary of State

to erect a factory is obtained there will be no objection to

this course, which would also considerably increase the