CO129-542-1 China- traffic in arms 31-10-1932 - 9-2-1934 — Page 124

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Would it be possible to allow machine guns to

be held in stock by the Far East Aviation Company so that

they could be fitted to aircraft when an order was obtained ?

These guns could be kept in store if necessary at the

Government armament base at Green Island and they therefore

could not possibly be fitted to machines or shipped out of

Hong Kong without the authority of the Hong Kong government,

which of course would not be asked for until the Far East

Aviation Company had obtained the necessary "hujao". The

company already hold a full arms license for which they pay,

I am informed, something like $2,000 per annum.

I should like you to know that this is not a

purely hypothetical case. The company have already lost

the sale to two Atlas and two A.W.16 machines through not

being able to give immediate delivery complete with armament

to a certain Chinese client who would have been able to

obtain the necessary "hujao" at once, but who was not willing

to take the machines without armament.

The money

involved in this transaction would have amounted to something

over $400,000 Mex.

It would be most kind if you would look into

the question and let me know whether you think there is any

way in which it can be dealt with in accordance with our

wishes.

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Yours sincerely,

(signed)

Sir John Higgins.

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