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come of $160,000 in return for the carriage of mails, since on only 100 lbs. of mail per trip the Government would receive some $224,000 in Postal Fees. Any sur- plus of Government subsidy would be earmarked for capital expendi- ture on improvements.
After discussing the above es- timates in detail, Major Creagh suggested that a $1,000,000 com- pany could assure Hongkong an ex- cellent service, extending probably as far as Rangoon and Singapore, but he did not see that this was necessary yet. It would be better to experiment with smaller scheme and connect up with the French and Dutch. He was as Bri- tish as anyone, but he did not want to be so inconveniently British he could not be International. Inter- national co-operation was the essence of peace and progress in this part of the world.
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Opportunity to Be First. "From October next the French and Dutch will, between them, run a bi-weekly service to Europe, but, once the French get into Hongkong, our job becomes twice as difficult, because there will only be half the income for us to work on, and, if they do come here, they will not be satisfied to stop at Hongkong but will push on parallel with us in our extensions Northward and South- ward. Now is our opportunity to act and show them our willingness, from the beginning, to co-operate and so prove to them that there is no necessity for them to come fur- ther east than the confines of their own Colonial Empire."
Major Creagh concluded by invit- ing the meeting to form itself into a body to foster commercial avia- tion in the Colony and to form a business organisation having for its object the definite inception of an air line as suggested in his address.
An interesting discussion fol- lowed.
Mr. A. Ritchie, invited by Major Creagh to state the views of the Far East Aviation Co. Ltd., of which he is a director, explained that the company has been work- ing for nearly three years more or less on the lines suggested in the (speech just delivered. Major Creagh was correct in assuming that the company had experience, qualified men and funds adequate to carry out investigations. At the moment they felt that their plans
were
not ripe to come before the public with proposals, but they were ap- proaching the Hongkong Govern- ment, Imperial Airways and other bodies with a view to form- ing a Hongkong public company.
Capt. W.E.F. Jones, who repre- sents the aviation department of Messrs. Arnhold & Co., Ltd., men- tioned that his company had gone so far as to file a scheme with the
Hongkong Government. Air lines in China had often met with fai- lure on account of the political in- security of the country although. apart from that factor, the country was the most promising in the world from an aviation point of view.
He thought the time was very close when air lines must be operated from Hongkong, which he regarded as a base of considerable importance to the chain of Imperial Air Routes which would operate from England. Hongkong was probably the crux of eastern air lines because from here lines could radiate in several directions.
A company so operating would look first of all to China, but in that country profit was still far off.
The question was "whether it is possible to operate air lines, with Government assistance, over territory which is Chinese, from termini that are not in Chinese territory?" Capt. Jones suggested that in his estimates Major Creagh had omitted a number of necessary items which would involve in- creased capital, but points like those could be considered and ad- justed.
Air Lines and Flying Club. Finally, Capt. Jones mentioned, with regard to the comprehensive proposals submitted by Messrs.! Arnhold & Co., to the Hongkong Government for operating air lines radiating from Hongkong, and also for operating a Flying Club, that his figures were a little more encouraging than he could have hoped for, but he must still rely upon a Government subsidy.
In reply to Mr. J. A. Plummer (Chairman of the Hongkong Gen- eral Chamber of Commerce), Major Creagh said that China had not so far entered into agreements with other countries permitting them to fly over her territory.
Mr. Ritchie remarked that the subsidy offered by the Hongkong Government was totally inadequate. He suggested that Capt. Jones had formed the same opinion; but Capt. Jones said that, in his remarks, he had not said this.
Mr. Ritchie: "We have satis- fied ourselves clearly that it is so."
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Major Creagh said that on learn- ing there were two schemes already in the field he withdrew at any suggestion of promoting third competing company, but he thought that since, before a line could be actually started, either of the two companies would have to go to the public for their capital, the meeting might usefully form itself into a body to speed things the two up by consulting with established companies and streng- thening their appeal to Govern- ment by its wider interests.
The opinion was expressed in several quarters, however, that there would be no advantage in forming a special organisation for such a purpose since the Chamber of Commerce was in a position to judge impartially and already had the necessary strength and repre- sentation vis-a-vis the Government. The Chamber of Commerce would not, of course, take sides but it could and should support aviation generally.
Motion Adopted.
The Hon. Mr. W.E.L. Shenton suggested that the meeting might well pass the following motion:
"That this meeting approves in principle the establishment of au air line between Hongkong and Hanoi."
This motion was carried unanimously on the proposition of the Hon. Mr. Shenton, seconded by the Hon. Mr. J. J. Paterson.
The proceedings concluded with an expression of thanks to Major Brasier-Creagh for his interesting and instructive address and to Messrs. Jardine, Matheson and Co. Ltd., for the use of their board room for the meeting.
The meeting was attended by Mr. J. A. Plummer (Chairman of the Hongkong General Chamber of Commerce): the Hon. Mr. W. E. L. Shenton and the Hon. Mr. J. J. Paterson (Members of the Legisla- tive Council); Messrs A.L. Snields, P. S. Cassidy and G. Miskin (Mem- bers of the General Committee of the Chamber of Commerce ); F. A. Joseph, L. Kadoorie, C. Champkin, F. Stewart Smith, J. H. Ruttonjee, Frank R. Smith, A. Ritchie, R. Vaughan Fowler and Capt. A. V. Harvey (of the Far East Aviation Co. Ltd.); Capt. W. E. L. Jones (Aviation Dept., Messrs. Arnhold and Co. Ltd.); Mr. Li Tze Fong (Bank of East Asia); N. J. Perrin (Manager, Thomas Cook and Son); M. F. Key (Secretary of the Chamber of Commerce); Col. L. G. Bird, D.S.O.
Letters of apology for absence on account of business or bad weather were received from the Hon. Dr. R. H. Kotewall (Member of Council); Mr. F. J. Gellion (Macao Electric Lighting Co.); Major E. P. Howard (U.S.A. Special Aviation Trade Commissioner to
China); Messrs. Wallace Harper, Frank Austin, H. R. Greatwood (Far Eastern Manager, Union Oil Com- pany), The Hon. Mr. W. H. Bell and Mr. George Potts, who had promised to attend, were away from the Colony.