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50

The provision under capital expenditure of $20,000 (£2,000) for workshops and tools is presumably intended to provide for the carrying out of all repairs to the Company's aircraft and engines including complete overhauls. If so, the provision is considered to be

too low.

The amount provided for a photographic section $3,000 (£300) is inadequate. It is pointed out that the cost of an Eagle aerial photographic camera complete is over £300.

The Council note that the scheme provides for the grant of a monopoly to the Company for a period of five years and for accommodation to be provided to the Company free of charge or at a nominal rent.

On the latter point they suggest therefore that in view of Article 24 of the Convention it would be preferable for the local Government to make a reasonable charge to cover housing and landing fees and to make up the extra cost to the Company by an equivalent addition to the subsidy.

The Council will be glad to be kept informed

of any further developments in this matter.

your letters has been delayed.

I am to express regret that the reply to

1

I am,

Sir,

Your obedient Servant,

Meltollowa

Hollow

Nar Gu

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