CO129-571-15 Sino-Japanese War- manufacture and import of aircraft to China 18-1-1938 - 5-1-1939 — Page 81

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Hong Kong. If the plant, etc., for any such factory were

obtained from this country it would be immaterial, so far

as United Kingdom trade interests are concerned, whether

the factory were established in Burma or in Hong Kong.

As regards the question raised by the Governor of

Hong Kong at the end of his despatch of the 19th September,

in regard to the eventual establishment in Hong Kong, after

the conclusion of the hostilities in China, of a factory or

factories for the assembly of aircraft, it appears to the

Board that it would be premature to attempt to reach

conclusions on this question at the present time, as

much must depend on future circumstances. The Board

understand that the Air Council, when they refer to the

possible advantage of establishing in Hong Kong a factory

associated with American interests, have in mind, not a

factory associated with American interests only, but a

factory in which both British and American interests would

participate.

The Board recognise that there might we 11

be advantages in American participation in such an undertaking,