CO129-571-15 Sino-Japanese War- manufacture and import of aircraft to China 18-1-1938 - 5-1-1939 — Page 51

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despatch promised in (112).

At No. 110 the Governor asked in

a despatch for our views (a) on the question

of a further application to set up a factory

for the assemble in Hong Kong of aeroplanes

for export, and (b) on the more general

question contained in paragraphs 4 and 5 of

that despatch as to the desirability of such an industry in the Colous

afactory after the cessation of hostilities in Chma.

2. The Governor states that he is of

opinion that it will eventually be very

desirable that a factory or factories engaging

in the assembling of aircraft should be

established, but that he is inclined to think

that such a development requires some

regulation and control, for example, as to the

number of factories set up. He suggests,

for example, that there might be one assembly

factory associated with British interests and

one with American.

3.