Sessional_Paper_1935 — Page 109

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4. In order to be of economic value, air lines must follow and be ancillary to established trade routes because on these are the great trade centres through which the life blood of the world pulses. Hong Kong, being the fifth largest port in the world and a great intermediate trading station has all the facilities and all the advantages to render desirable its development as an air port linking China with the near East and Europe on the one hand and Manila, America and Australia on the other. Already aviation has developed sufficiently to make this mechanically possible and all that is needed to make it an accomplished fact is enterprise and goodwill. In view of the immense advantages to be gained by all concerned from the facility of world wide rapid communication we are of the opinion that a vigorous attempt to co-ordinate the various interests which would gain by this air-link should be made and that the goodwill necessary for co-operation and the security for enterprise on an economic basis will be forthcoming.

5. It is natural and right that we should first consider Hong Kong as a Port for British air lines, but as with shipping in the past, so with aviation in the future, and we consider that having secured reasonable British participation Hong Kong must maintain an open port and welcome the aviation interests and air lines of all

countries.

6. We must envisage a very definite growth in air-traffic and air-mindedness. With established air routes it will be much easier for business men and others to pay short visits to the Far East. The more wealthy classes of tourists and holidays makers may well be induced to visit Hong Kong and China if they can do so without the need of a long sea journey. The primary reason for through air traffic must, however, be the carriage of mails. We are aware that even though the air-mail to Europe only commences at Singapore the traffic from and to Hong Kong by that route is steadily increasing. With an air connection through to Hong Kong we are confident that there would be a tremendous increase in air-mail traffic. A further considera- tion is that the definite establishment of Hong Kong as an air-port would, apart from affording increased facilities to Hong Kong and China, tend to create a new business and a new industry which may, to an increasing extent, replace waning business in other directions.

7. With regard to Air Mail we were informed that in spite of the depression there has been a steady increase in the use of the Air Mail services from Hong Kong to Europe as follows:-

1932. August to December

8,618 letters

1933.

January to December

1934. January to June

31,635

>>

17,864

""

8. The increase in 1934 was about 10 per cent and the Air Mail letters sent were 2.46 per cent of steamers' letters. We were informed that it was generally estimated that to operate an Air Mail service 5 per cent to 10 per cent of the postal matter should pay air premiums. It must be remembered, however, that the premium on letters from Hong Kong to Europe is heavy and that, owing to lack of direct air communication the saving in time is at present not very great. In view of the fact that a direct Air Mail from Hong Kong to London would probably take no more than seven or eight days we are of the opinion that it would well pay the business man to use such service and that a great increase could therefore be ex- pected.

9. The subject having been exhaustively discussed we finally express our opinion that no time should be lost by the authorities in conjunction with British air interests in connecting Hong Kong by air to the air routes already established. We realise that the matter has already received the attention of both the Hong Kong Government and the United Kingdom authorities and that there are a number of difficulties in the way. We feel, however, that the advantages to all concerned are so considerable that a vigorous attempt to co-ordinate all interests will not meet with failure.