CO129-550-3 Empire Air Mail Services- cost of participation to be exempted from assessment for military contributions... 19-10-1934 - 17-1-1935 — Page 22

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(To Ceylon)

countries concerned. In the case of the United Kingdom the preferential Imperial postal rate would be fixed at the flat rate of lid. per oz. in lieu of the present rate of 1d. per oz. and ld. per subsequent oz. Empire Governments participating in the scheme" would, of course, be free to fix their own postal rates at their discretion; although the advantages of maintaining rates at the lowest possible level in order to attract traffic are manifest.

The

(ii) Imperial Airways would operate trunk air services, catering for passengers as well as air mails, of the approximate frequencies indicated in the table annexed to the enclosed memorandum. advance in frequency, speed and capacity of these proposed new services appears to his Majesty's Government to be really striking and if carried into effect should, in their view, enable Imperial air transport activities to attain world-wide pre-eminence.

(iii) The agreement with Imperial Airways would cover

a 15 year period which is considered to be the minimum period adequate to ensure the requisite security of tenure for a scheme of this magnitude involving, as it would, the raising of two million pounds of additional capital. It would further provide for an annual subsidy to the Company over this period to which Empire Governments are now invited to contribute,

(iv) It is further proposed to set up in London an

Advisory Board on which the Dominions, India and the Colonial dependencies participating in the scheme would be represented so that all the Governments concerned might be in a position to make their needs and wishes known effectively to Imperial Airways, and to ensure the ready adjustment of difficulties experienced in the working of the scheme.

3.

There

It will be seen that the scheme would provide

for a minimum frequency of services between London and

India of four per week of which three would be extended

to the Straits Settlements and two to Australia.

would also be a corresponding frequency of services in

the reverse direction. It might be found possible to

increase