C.

at

2.

6

The Office of the Minister of Foreign Affairs,

and at a semi-official luncheon afterwards. 1200

hours 16.3.28.

The following persons being present:

Foreign Minister. Mr. Chu.

Chief of the Canton Air Force.

General Chang.

General Chan.

Various guests.

myself.

I.

Conference "a".

Only the general outline of the scheme was

discussed.

Conference "b".

Details were discussed, and a written statement

was presented to the Foreign Minister, who interviewed Marshal Li before he left for the

North.

Conference "c".

Practically no discussion took place as the Foreign Minister approved the scheme in general as outlined by "Conference'b'."

To facilitate the reading of this report I have

dealt with the subject under the various important headings discussed, and not conference

by conference.

CAPITAL.

Owing to lack of experience in Commercial Aviation the Canton officials at first considered that a total

capital of $200,000.00 (two hundred thousand dollars) Hong Kong, would be sufficient, the difficulties of

operation with so small a capital were explained to

them

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