CO129-571-15 Sino-Japanese War- manufacture and import of aircraft to China 18-1-1938 - 5-1-1939 — Page 153

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peace time.

illis replied that they were not

u. K. trade night stand to gam

very much concerned, out-that-on the whole they

favoured-4t, especially if British machinery could

be used by the factory.

Mr. Cowell said that the feeling at the

meeting seeded to be, therefore, that a decision wee

needed by the abinet on the following pointe-

(1) was the Cabinet policy to prohibit the

export of completed aircraft to China and Japan to

be maintained.

(2) If so, did this prohibition apply to

Hong kong only, or to all British territory, including

Burma.

(3) If the answer to the letter was that the

decision applied to Hong Kong only, then we should

propose to tell the Governor of Hong Kong that we

have no objection to the setting up of the factory,

and that from the point of view of Hong Kong it would

be welcomed, but that as long as present hostilities

lasted no completed aircraft could be exported to the

belligerente. The promoters could, however, be

inforced that if they decided to establish a factory

in Burma permission for export would be given.

It was agreed after some further discussion

that the Colonial Office

should write to the Foreign

Office as a result of the meeting, setting forth the

an agreed

conclusions, and recommend that

memorandum should be

put up to the -abinet after discussion between the

Foreign Office, Molonial Office and Air Ministry.