CO129-571-15 Sino-Japanese War- manufacture and import of aircraft to China 18-1-1938 - 5-1-1939 — Page 44

110. Ger. Secret (2)

19.9.38

See (90)

A

Ref 90, evels ce of comes me another applicater to set ut a similar factory in H.K.

The circumstances in China have not

altered to our advantage, since our reply to the

first application was sent. I think, therefore,

we can only reply to this application in the same

terms, namely that there is no objection to the

setting up of the factory in Hong Kong, but

that as long as the present Sino-Japanese conflict

continues permission cannot be granted for the

export of completed aircraft from such a factory,

in Hong Kong, either to China or Japan.

Perhaps G.D. will advise as to the

answer to paragraph 4 of the despatch.

As the Governor asks for a reply by tele-

gram it would perhaps be best to reply accordingly

as at "A" above and recirculate for consideration

of the general question in para. 4 of the despatch.

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