82
Further although the number of mules stated to be required
is 1,200 many of which are on their way down to Bhamo,
the balance of some 800 being considered sufficient for
ordinary trade needs for the next four months, it has been
proposed that all mules shall come under official control.
This may not materialise but in any case the fixing of a
moderate rate for munitions should have the effect of
stabilising commercial freights. So far the agreement
is said to be merely verbal and mule freights are soaring
not only because of the fear of commandeering which these
activities first inspired but also because of increased
demand for cotton yarn. I have been in touch with the
head of the Tengyueh Bureau and urged him not to lose sight
of the needs of ordinary Burma-China trade. He and the
Chairman of the local Chamber of Commerce both assure me
that trade will not be unduly affected. They tell me the
Myitkyina-Tengyueh route is also being considered for the
transport of munitions, I have brought all these matters
to the notice of the Burma authorities.
50 The buildings and landing ground of the Central
Aircraft Manufacturing Company's establishment at Loiwing
were reported at the beginning of this month as practically
completed. The great bulk of the equipment for this
concern has been imported by the Irrawaddy and the Bhamo-
Namhkam road. I am informed that the factory will
require more than 5,000 tons of additional equipment, already
ordered, during the rains, and the American management, which
has done much to improve this road, is doubtful whether a
large section of it will be usuble after June.
I have the honour to be, etc.,
(Signed G.E. STOCKLEY,
Consul.