SECRET.

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Page 236

COPY

яс

BY SAFE HAND

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332 Gloucester Building,

31st July 19391

282

s/0.32

(& 3 copies)

Copies to:-

D.M. Chungking

P/L.23

Yunnanfu,P/L.8

Dear Broadmead,

It is possible that the

following particulars of the Joint Transport

Administration, which I had from Mr. A. Morton

Smith,may be of interest to the Embassy.

Morton Smith is, as you know, Adviser appointed

personally by H.H. Kung to the National

Commission for the Control of Liquid Fuels,

the chairman of which is Ch'in Fen, the

Bolitical Vice Minister for Economic Affairs,

and which is directly under the control of the

executive Yuan,

Morton Smith tells me that it

was in order to thwart an attempt by Chang

Chia-ao in March last to bring the South West

Transportation Company under the control of

the Ministry of Communications that the Admin-

istration was formed, and placed under the

direct control of the executive Yuan. It is

a joint administration of the South West Trans-

portation Company (chairman: T'ang Sheng-chih),

the North West Transportation Company (chairman:

Yu Fei-peng) and the Ministry of Communications

(of which of course Chang Chia-ao is head). I

/gather

P.M. Broadmead, Esquire, M.C.,

British Embassy,

SHANGHAI,

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