17
Transport.
The question of the organisation and fuelling of road transport is a critical one for China to-day, both as regards the capacity to import vital supplies and as regards the internal movement of goods. The problem of maintaining and extending railway transport, particularly for heavy machinery and such goods, is also vitally important. The available means of transport are:-
(1) Air.
(1) Air.
(2) Railway.
(3) Water.
(4) Motor trucks.
(5) Hand trucks.
(6) Pony- and bullock-drawn carts.' (7) Pack trains and camel caravans. (8) Coolie carriers.
62. So far as air transport is concerned, this is in the hands of three companies, the China National Aviation Company, which flies Douglas planes and is under American influence; the Eurasa Company, which flies Junker planes and is half German; and the Sino-Russian Company, which operates the service across Sinkiang from Hami to Ili and on to Moscow, also with Douglas planes. The routes are limited to the following external: Chungking-Moscow; Chungking-Hong Kong; Kunming-Haiphong; Kunming-Rangoon. The routes also serve certain internal communication purposes as well, e.g., the Moscow route connects Chungking, Chengtu, Lanchow, Suchow, Hami, Urumchi and Ili, and there are, in addition, regular services between Chungking and Chengtu and Chungking and Kunming. These services are most useful for passenger purposes, but cannot, of course, carry any effective load of goods. They do, however, enable official communications to be maintained both personally and by letter.
63. It is a great pity that the Kunming-Rangoon service is not in the hands of a Sino-British company, which might serve Northern Burma as well as Yunnan, and could be run in connexion with a Sino-British aeroplane factory which might be established in North Burma to the great benefit of both Burma and China, and which, in normal times, could supply aircraft for such places as the F.M.S. and Siam in addition to local needs.
64. The Americans, Russians and Germans have realised the importance of getting in on these air services, which are bound to develop very greatly in the future since the Chinese are becoming very air-minded, and in many cases there is no practical alternative to air services for passengers and mails. The influence of these services goes a good deal beyond the mere transport facilities they provide. In fact many of the pilots are foreigners, and they have considerable influence as instructors and otherwise in the different localities, and in the placing of orders for planes of all kinds. The British are losing a very great opportunity for future trade and influence by refusing to partake in the development of aviation services in China. I realise the difficulty at the present moment in sparing personnel, but the very small number required would make it in my view well worth while in consideration of the very large influence that it would have as regards the future. There can be no argument against it from the point of view of not antagonising Japan, since the Americans are already doing so much in this direction. If this matter is allowed to wait over until after the war then it will be too late to establish any market for British airplanes in China and the Far East.
(2) Railways.
65. From the point of view of imports and exports railway transport is of supreme importance, as it is by far the most economical method of transporting large quantities of goods great distances. It is also of value in certain districts for internal transport, where the Chinese have managed to keep the railways running in spite of being under gunfire from the Japanese or subject to aerial bombardment. The stories of how this has been accomplished and of the very large mass of goods still moved by these means display a heroism in the railways
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