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Would it be possible to allow machine guns to
be held in stock by the Far East Aviation Company so that
they could be fitted to aircraft when an order was obtained ?
These guns could be kept in store if necessary at the
Government armament base at Green Island and they therefore
could not possibly be fitted to machines or shipped out of
Hong Kong without the authority of the Hong Kong government,
which of course would not be asked for until the Far East
Aviation Company had obtained the necessary "hujao". The
company already hold a full arms license for which they pay,
I am informed, something like $2,000 per annum.
I should like you to know that this is not a
purely hypothetical case. The company have already lost
the sale to two Atlas and two A.W.16 machines through not
being able to give immediate delivery complete with armament
to a certain Chinese client who would have been able to
obtain the necessary "hujao" at once, but who was not willing
to take the machines without armament.
The money
involved in this transaction would have amounted to something
over $400,000 Mex.
It would be most kind if you would look into
the question and let me know whether you think there is any
way in which it can be dealt with in accordance with our
wishes.
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Yours sincerely,
(signed)
Sir John Higgins.
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