CO129-511-13 Civil Aviation- proposals for experimental passenger and mail service 28-7-1928 - 28-12-1928 — Page 63

(3)

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(b) That the Hong Kong Government will not support any

other Aerial Transport Company that may operate from and to Hong Kong, in any form, unless the "Company" is unable to carry out its obligations, or extend its services sufficiently fast to meet the requirements of Hong Kọng.

This agreement to extend for a period of five years.

I think that the above five clauses cover the requirements of the suggested "Company", and that as soon as they have been settled and officially confirmed, and agreement has been reached between the three Governments as to their policy, the formation of the "Company" could be proceeded with.

(c)

In view of the difficulty of obtaining a guarant- eed subsidy over a period of five years from the Cant on Government, it is thought that it would be advisable to leave them out of the Subsidy, and only ask them to put up actual

capital.

I understand from their representatives that they would be willing to put up $150,000.00 (One hundred and fifty thousand dollars Hong Kong) for this purpose.

If the Company is to start operations at an early date, it is important that the questions under consideration should be settled as soon as possible, as it would be of great assistance in the actual operation of the machines, if the Services could be started during the best season of the year, namely between September and March.

I have, &c.,

(sd.) R. Vaughan Fowler,