CO129-580-4 Proposed aircraft factories in Hong Kong 21-12-1938 - 2-1-1940 — Page 52

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case and to the physical limitations of the

Airport, it will be necessary to regulate and

control the number of factories to be

established, I am advised that it would

be premature in present circumstances to

attempt to reach any precise conclusions on

this question.

Since it does not fela To be

If ii is not possible to

n

pursue with the present applicants the

diverson of

possibility of diverting their interest

to Burma as a more desirable site for

their enterprise as far as the strategic

interests of His Majesty's Government are

concerned, there might be advantages in

securing at least that any factory to be

established with British and American

capital in Hong Kong should take the form

of a single Anglo-American undertaking,

if possible with predominent British

control, rather than two separate and

competing undertakings as you appear to

contemplate at the end of the fourth

paragraph of your Secret (2) despatch

of