CO129-511-13 Civil Aviation- proposals for experimental passenger and mail service 28-7-1928 - 28-12-1928 — Page 46

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Hong Kong registered Company by the grant of facilities in Canton which would be reciprocal to the grant in Hong Kong

of like "facilities to a Chinese Company backed by the Canton Government, the establishment of which is foreshadowed. It

is expected, however, that even if this Company were not

established the Canton Government would afford facilities to

the Hong Kong Company.

3.

There are indications moreover that the

Canton Government might endeavour to restrict the activities of the Hong Kong Company to the Hong Kong-Canton-Macao routes while Mr. Vaughan Fowler contemplates for the Hong Kong Company a weekly service to Swatow, Amoy, Foochow and Shanghai (see enclosure). This is a matter which will require further consideration as between the promoters of the Company and the Canton Goverment.

4.

Information gathered by Mr. Vaughan Fowler

during the last few weeks makes it fairly clear that all

idea of co-operation fran Canton in the formation and working

Canton of the proposed British Company must be abandoned. would be unlikely to give any financial assistance except on terms which would be unacceptable.

The Macao Government, on the contrary, is

understood to be prepared to co-operate with the Hong Kong

Company and to assist it with a small subsidy.

5.

It is proposed to fix the capital of the Company at $400,000. Mr. Vaughan Fowler pointed out that unsubsidized commercial aviation has so far not proved possible and before he appeals to the public for the necessary capital it is necessary for him to know what subsidy can be guaranteed. Granted the promise of an adequate subsidy he anticipates no difficulty in raising

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