100

Copy.

Johnson, Stokes & Master.

Solicitors and Notaries.

URGENT AND CONFIDENTIAL.

HongKong & Shanghai Bank Building,

Hong Kong.

14th September, 1938.

The Honourable Mr. N.L. Smith, C.M. G.,

Colonial Secretariate.

Sir,

We have the honour to refer to the writer's

interview with you on Friday last, the 9th instant, with

reference to an application which had been previously made

on behalf of our clients for permission to erect in the

Colony of Hong Kong in the neighbourhood of the aerodrome

at Kai Tak a factory for the erection of light aeroplanes.

As the writer informed you at that interview, there

is no intention whatsoever of manufacturing any machine, at

any rate to commence with, and thereafter until the present

Sino-Japanese troubles are over, other than light machines suitable for clubs and for primary training. There is no

intention even of manufacturing advanced trainers during

this period or until the factory has become firmly

established by the sale of light machines.

The organizer of the scheme is Mr. Wen Lin Tschen

who, until 1937, was the Commanding Officer of the Chinese

Naval Airforce but who has now retired and he is backed, we

are instructed, by a very substantial group of Chinese.

The scheme is to form a Company under the Hong

Kong Companies Ordinance with an authorised capital of five

million dollars Hong Kong currency of which, in the first

place, at least one million dollars will be subscribed and we

understand that funds are available for the immediate

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