CO129-571-15 Sino-Japanese War- manufacture and import of aircraft to China 18-1-1938 - 5-1-1939 — Page 152

152

representatives of the Defence Departments that

there was no objection to setting up the factory in

Hong Kong from a defence point of view.

Mr. Bigg asked whether it was not likely

that if the promoters of the scheme were

discouraged from setting up a factory in Hong Kong

they would go to Macao or Canton in preference to

Burma.

there would appear to

In peace time

much better market for aircraft in Hong Kong than in

Burma, and even a site in South shins might be

preferable to the latter. Mr. Henderson doubted

whether it would be likely that the factory would

be set up in Recso or Canton.

Portuguese would certainly discourage the former.

He thought that the

är. Cowell naked whether the Burmese

Government would offer any inducement to the

promoters to set up the factory in Buras,

Mr. Donaldson replied that the whole thing was too

vague from their point of view for this to be

likely.

Bigg eold that he thought it necessary

to refer the matter to the Gabinet in any case,

since their original decision had been given a much

wider application.

Mr. Matthews pointed out that machines

would probably be exported to Jupen from the

factory as well as to China, and Mr. Henderson said

that this wee not likely to be popular with the

Chinese in Hong Kong and might cause trouble.

Mr. Cowell saked whether the Board of

Trade would have any objection to the project in

peace