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also that it could not be said that it was the defendants in
these cases who were ecusing delay because the plaintiffs
hed failed to file their pleadings. In the end both parties agreed to the indefinite continuance of the injunctions.)
27th December.
Chinese Embassy presented to the Foreign Office
certificates for the Chinese Nati nalist Government to the
effect that CAT (Chen ault and Willauer) hed purchased the assts
of CHAC and CATC. This information was transmitted by telegram
to Hongkong.
29th December.Willauer and Hepner saw the Governor of Hongkong
and informed him of the sale which had taken place on 12th
November. They indicated that this acquisition of the'planes
by Americans meant that U.S. markings would have to be put on these 'planes, but stated that they would await recognition by H.M.G.
of the validity of this sale.
30th December. U.S. Embassy asked the Foreign Office to recognize
the validity of the acquisition by American interest of the
assets of CNAC and CATC.
Foreign Office replied: (1) that the
certificates from Chinese Nationalist Government would be
made available to the court in Hongkong if the U.S. interest
wanted to adduce them there; (2) that the validity of the sale
was a cuestion for the court and not a matter for decision by
executive action.
January 3rd. The American Embassy who had previously requested
that the Hongkong Government should transfer the aircraft to the
American interest by legislative or executive action, were
informed by the Foreign Of ice that this was not possible and
that the legal proceedings in Hongkong must take their course. It
was pointed out that there were two appeals from any decision of
first instance the last to the Privy Council and that if all
appeals were exhausted the proceedings would probably take about a
year. (This communication must, of course, be understood
as meaning that this result of a delay of a period of a year
would naturally be dependent on the Nationalist/American side
taking all the steps open to them in the courts of Hongkong and
conducting their case with reasonable skill and prudence. The
/communication