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bound to grant unqualified permission for a British com-

merical air service to ly between Chinese ports.

5.

So far as this Legation are aware, the only re-

gulations governing the flight of foreign aircraft over

China, are those contained in the "provisional scheme" a

copy of which is enclosed herewith. You will observe that

Article 7 of these regulations deiinitely prohibits the

carriage of postal matter and merchandise.

6.

As stated these regulations are provisional and

probably intended only to cope with experimental flights

such as have been carried out in recent yeers and there is

nothing to prevent the Chinese Government from passing

new regulations to allow of the establishment of foreign

or sino-foreign commercial air services should they be

interested in the enterprise. On the other hand the

present attitude of China towards the exploitation by

foreign companies of her avenues of communication is

adverse and for this Legation to approach the Government

officially with an enquiry as to the conditions in which

they are prepared to allow the establishment of a Brit-

ish commercial air service to navigate between Chinese porte would, in His Majesty's Minister's opinion be to

court the reply that they have no desire to encourage

any form of foreign enterprise in this sphere.

7.

In the circumstances I am to suggest that your

best course would be to approach the competent Chinese

Authorities direct with a view to interesting them in your

proposals, and ascertaining what their attitude is in

regard to such questions as you raise in points 1, 2 and 4 of your letter under reply. Should you decide to do

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