CO129-571-15 Sino-Japanese War- manufacture and import of aircraft to China 18-1-1938 - 5-1-1939 — Page 188

-

- 2 -

188

many countries of the world and, in addition, factories have

been established in Canada, Australia and possibly in other British

Colonies.

The preliminary investigations carried out by the Intercontinent Corporation (China) Ltd. have proved that one of the

best locations in the world for the construction of airplanes is

in the Orient and particularly Hong Kong. Climatic conditions,

large quantities of skilled labour at very reasonable prices, free

port, good airplane facilities both for land planes and sea planes,

and a proximity to several large markets have all contributed to

the selection of Hong Kong as a basis of operation, and, in addition, Hong Kong is becoming more important each year as an

air line terminus.

All of the large commercial air lines are very busily

engaged in trying to obtain quick deliveries on transport land

and sea planes and, frankly, the manufacturing facilities of the

Great Powers are so busy with the construction of military aircraft

for their respective Governments that there is a tremendous

demand for manufacturing facilities for commercial types of

airplanes and, in addition, a fairly large demand for the smaller

type of military airplanes for countries not in a position at the

present time to construct airplanes for themselves.

The Intercontinent Corporation (China) Ltd., therefore,

now proposes to build and operate a factory for the manufacture

of airplanes in Hong Kong, and if approval is obtained from the

Hong Kong Government for this project, a large portion of the

necessary capital will be British.

It is proposed to obtain, if possible, permission to

build the factory adjacent to the Kai Tak Airport by either leasing

or purchasing any land that may be available suitable for the said project and the factory buildings would be contracted for within thirty days from the time approval is obtained. It is estimated

that five and one half months to six months will be required to