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 4

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I relieve that Imperial Curways are working out details at present, in conjunction wit the Came Ministry

Mlade

77.12.

A.

inauguration of the Feeder Service are further

advanced and until decisions have been reached

on which the revenue to be expected from the new

service can be estimated. I understand from

Mr. Cade that it is not unlikely that arrangements will be made for the establishment of a Feeder

Service from Hong Kong to connect with the

Imperial Airways Australian Service in the

comparatively near future, and in any event before

the inauguration of the scheme with which 1. is

concerned.

Mais

It would I think be preferable to wait

until Hong Kong is in a position to put forward a

detailed case for exemption from Military

Contribution, (ie., until the probable cost of and revenue from the new Service including the Feeder Service from Hong Kong is known), before approaching

the War Office and Treasury, and suggest that we

should in reply to 2, and with reference to the

general papers dealing with the inauguration of the Feeder service, inform Hong Kong that it is

proposed to wait until they are able to put up

detailed estimates of the revenue and expenditure

in connection with the new Service before attempting

to obtain the agreement of the War Office and

Treasury to its treatment on a net revenue basis. If hour it is decided to approach the W.O. and Treasur at ma

I suggest that we should write to the

War Office (who are I understand appraised of the

proposal for inaugurating a scheme for the carriage

of mails by air to and from Hong Kong) with

reference to correspondence terminating in 18 on

92622/32 and the general papers on which the

A

present scheme has been brought to the notice of

the