Sir John Siddeley by 1933 had patented the alloy wing of A.W.23 bomber-transport (the Empire task) and invested in floor space (UK Aero’s then-biggest) to build it and civil types. He financially over-reached, losses, 33/35, and faced bankruptcy: Ritchie,P.13: 3/35 “production…not of a profitable nature”. As soon as Germany renounced Versailles, Czechoslovakia began the fortification of the Sudentenland that was the cause of Hitler “taking it back”, 9/38, and funded initial design to turn that wing into a proper bomber. (I de-crypt my notes as sourcing this to P.Fearon,The Br. Airframe Industry and the State,1918-35, Economic History Review,27/2 {1974}, but let me confirm, pls.). Air Ministry’s 8/35 order for 80 A.W.38 Whitley had been conditional upon financial restructuring, and was the prime asset putting A.S.Devt.Co in a position of strength (Sir J. as MD) for the 7/35 merger as HSAL – in RAF Expansion Scheme ‘C’, May,35, the business bonanza was bombers, where Gloster/Hawker had no presence. Order for Type 142M Blenheim I followed in 9/35.
(bumped 20/4/11 when I found the Czech source: Barnes/HP/Putnam, P.379: (June,1935: ) “A.M had invited tenders for…a replacement for B.3/34 (Whitley), which was itself a stop-gap derived from (A.W.30, itself derived from A.W.23 bomber-transport) designed for the Czechoslovak govt.”