Enclosure No. 2.
Extract from South China Morning Post of 30th July, 1932. 78
COMMERCIAL AVIATION
FOR HONGKONG.
REPRESENTATIVE MEETING DISCUSSES THE LOCAL PROSPECTS.
GOVERNMENT SUBSIDY NECESSARY.
A number of influential local residents and members of firms interested in aviation accepted an invitation from Major E. B. Brasier-Creagh, M.C., to attend a meeting, held a few days ago, to discuss the prospects of the early inception of an air line connecting Hongkong with the existing French and Dutch air lines to Europe. Eventually a motion was carried approving in principle the establishment of an air line between Hongkong and Hanoi.
In introducing the subject, Major Creagh said that the carriers of the world's air traffic had their eyes on Hongkong. The directors of the French air line, which connects Saigon with Marseilles, only the other week succeeded in travelling from Bang- kok to Marseilles in six days, and propose to switch their service to Hanoi in the month of October. A little more than a month ago the Far Eastern representative of this Company, "Air Orient", visited Hongkong, having received in- structions to extend the line at the earliest opportunity to Hongkong or Canton, whichever gave the best facilities. The Dutch air line. "K.L.M." had made
many ap- proaches to the Hongkong Govern- ment with a view to routing mails by that line. Imperial Airways and one or two American organisa- tions had also made preliminary investigations.
Any of these air lines would naturally be welcomed to Hong- kong but, as Britishers, he sup- posed the welcome to a British air line would be very much greater. Major Creagh proceeded to discuss at some length the political and commercial importance of the development of British aerial interests in the Far East, pointing out, in particular, that orders for aeroplanes were likely to go to the countrymen of those running the air serivce.
"In order to have the right to speak in the Far East on questions of aviation", said Major Creagh, "Hongkong must have a place in the air. If you face these pro-, blems, I think you will find sufficient justification, after examining the commercial aspect of them, to form the firm opinion that the sooner an air line comes, the better for all concerned."
an
Major Creagh briefly recapitu-| lated his views, already published, as to the practicability and advantages of establishing international air line in the Far East as a main line of local traffic. and as a feeder to air lines to Europe and elsewhere. The con- centration of such a fleet as this would create the germ of an idea such as was outlined by Mons.
3
Herriot to the League of Nations in his suggestion that a weapon is needed by the League for the control of insurgency. He had been asked how a company could be run with Dutch, French, American, Portuguese, and Chinese directors probably outnumbering the British Directors, and his answer was that he would register the company under the League of Nations. True, there is no machinery for this at present, but circumstances make cases.
Questions of Finance.
Coming to questions of possible income and expenditure, Major Creagh suggested that a line from Hongkong to the nearest points at which contact can be effected with lines operating through to Europe (Hanoi for the French line and Bangkok for the Dutch) would have a maximum possible income of $75,000 a year, to be increased perhaps in the third
year to $100,000. This would not be enough, and promoters must therefore look to the Government for a subsidy.
As far as he was aware, the' Government did not visualize an offer of support of more than three lakhs, to be extended over five years. He was sure that $60,000, added to the $75,000 a year already mentioned, would not nearly ap- proach the outgoings on the most conservative estimate.
Major Greagh had circulated to the meeting an estimate which sets forth the following items:
i
Capital Expenditure, 2 aircraft
at £3,000 each, plus substantial
spares, etc., say $100,000
Running costs, say $44,000
Other outgoings, say 106,450 Reserve and Dividend,
$20,000
Total, $170,450
Total First
$250,450
say
Year Expenditure
Suggested Capital $300,000
Taking the Income looked for at $170,450
Against this he saw only a total of $135,000.
In a footnote to this estimate Major Creagh suggested that the Government could properly be asked to guarantee the service-on a sliding scale, if necessary-an
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