CO129-571-15 Sino-Japanese War- manufacture and import of aircraft to China 18-1-1938 - 5-1-1939 — Page 167

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trouble.

Mr. Cowell asked whether the Board of Trade would

have any objection to the project in peace time. Mr. Willis

replied that they were not very much concerned, but that on

the whole they favoured it, especially if British machinery

could be used by the factory.

Mr. Cowell said that the feeling at the meeting

seemed to be, therefore, that a decision was needed by the

Cabinet on the following points:-

(1) Was the Cabinet policy to prohibit the export of Completed [aircraft

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 latter 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

smpleted present hostilities lasted no aircraft could be exported

to the belligerents. The promoters could, however, be

informed that if they decided to establisn 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

recommend result of the meeting, setting forth the conclusions, and and

that a memorandum should be put up to the Cabinet after

discussion between the Foreign Office, Colonial Office and

Air Ministry.