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Nanking, China August 23, 1937.

With reference to the arrangement whereby Jardine, Matheson

& Company, Ltd., will act as Receiving and forwarding Agents for the

Aeronautical Commission, it is of the utmost importance that the

relative shipping documents (Bill of Lading, Policy of Insurance,

Packing Lists, and Invoice) for each consignment should be in the

hands of Jardines well before the arrival of each steamer. Without

these documents it is not possible to obtain release of the material

from the ship or wharf. It is of paramount importance that the relative

Huchao (issued by the Nanking Government should be given to Jardines

before arrival of the vessel. This document is essential as proof

that the material is for the National Government, and without this

Huchao the Hongkong Government will not issue a Permit for release

of the material from Hongkong.

All the foregoing documents are usually handed to the

Bank abroad when the drafts under the Letter of Credit is negotiated,

therefore, it is suggested that the Bank's offices in China be instructed

to hand over the documents direct to Jardines, Hongkong, immediately

they are received.

According to Clause IV of the Agreement, the Commission will

establish a revolving credit in Hongkong on which Jardines may draw

for all expenses and their fees. It is suggested that the Commission

address a letter to their Hongkong Bankers in the fax form attached

hereto.

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