CO129-571-15 Sino-Japanese War- manufacture and import of aircraft to China 18-1-1938 - 5-1-1939 — Page 89

HONE:

HOLBORN 3434

Extn. 41

Any communications on the subject of this letter should

be addressed to :-

THE

UNDER SECRETARY

OF STATE

and the following number quoted :-

S.42436/S.6.

Sir,

AIR MINISTRY,

1689

LONDON, W.C.2.

SECRE T.

||

November, 1938.

117.

With reference to Colonial Office letter No. 53846/38

of 24th October, 1938, regarding a proposal to establish in

Hong Kong a factory for the assembly of aircraft, I am commanded

by the Air Council to acquaint you, for the information of the

Secretary of State for the Colonies, that while in their opinion

the establishment in the Far East of an aircraft factory under

British control would be advantageous, Hong Kong is not the

best location for the purpose.

2. On strategic grounds, Burma appears to the Council

to have much more in its favour, and unless the financial

support available is sufficient to provide for more than one

factory, the Council would prefer to see it located there.

On the other hand the Council consider that the establishment

of an aircraft factory at Hong Kong associated with American

interests might be of advantage in influencing the Japanese to

The Under-Secretary of State,

AZMED

CHE

Colonial Office,

Whitehall

S.W.1.