101
2
subscription of this amount and that the necessary arrangements have been made whereby further subscriptions can be obtained up to the authorised capital of the Company as and when required.
The machine which it is contemplated building
is a light training machine of which, we are instructed, a small number designed by Mr. Tschen and his staff, when in Government service, have already been built and satisfactorily flown and in connection with which he has received a promise of a substantial initial order.
In addition, it is intended to negotiate with an established aeroplane Company or Companies in England to enable the Hong Kong Company to build light training machines under licence.
It is we think advisable to go into the history of aviation in China, so far as it concerns primary training machines, to show the position in China with regard to British aircraft as opposed to those of other countries.
Before 1928 although there were large numbers of aircraft in various parts of China there was no organized airforce nor was there any organized training school. From 1928 onwards various flying schools were started in various provinces both in North and South China and from that date until approximately 1932, we are instructed, approximately 90% of the pri ary training aeroplanes in China were of British make, mostly either Avro "Avians" or De Havilland "Moths". These schools were operated by various provinces and no Central Government organization was effected until approximately 1932 when the Central Government contracted with an American aviation company for the formation of a large aviation school, with the result that a mission of