CO129-571-15 Sino-Japanese War- manufacture and import of aircraft to China 18-1-1938 - 5-1-1939 — Page 165

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Mr. Bigg asked whether the projected factory could

export parts of aircraft unassembled. Group Captain Coryton

replied that there would be no point in this. The factory

would import parts and assemble them in Hong Kong, as to

set up a plant capable of manufacturing aeroplane would

take two years at least.

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Mr. Fitzmaurice suggested that the reply to the

promoters of the scheme was that there was no objection to

the factory being set up, but that it could not be permitted

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to export/aircraft to China or Japan as long as hostilities

lasted.

Group Captain Coryton stated that from the Air

Ministry point of view Burma offered a very much better

site as being in a much securer position in case this

country should be involved in war.

Mr. Cowell asked whether there would be any

objection to the factory being set up there and to exporting

aircraft to China. Mr. Fitzmaurice replied that there would

be no legal objection as there was no legal war, but it was

pointed out that the Cabinet decision, as drafted, applied

to all British territory. Mr. Fitzmaurice suggested that

as the project upon which that decision was taken applied

to Hong Kong alone we might return to the Cabinet for a

decision as to whether the prohibition applied to that

Colony alone or to all British territory.

In reply to a question, Mr. Donalason said that

the Burma Government would scarcely be concerned eitner one

way or the other if it were decided to set up the factory

in Burma. It was a purely commercial concern, and no

Government permission would be required except for the

acquisition of land.

It was felt that the defence position as far as

Hong Kong