There are no stations definitely laid down, it is impossible to give an exact answer to this question, but in every direction there is plenty of sheltered water. Factories Capable of Repairing Damaged Aircraft. No factory exists in Hong Kong, but at Shanghai there are factories and more particularly garages which have every facility for repairing machines as they have up to date garages and modern body building plant. Skilled Labour. Skilled labour can be had very cheaply indeed, and when properly supervised by British workmen is quite efficient and reliable. Special Limitations as to Working Hours. No limitation as to working hours. Air Pilots. No air pilots beyond the ex-service pilots are available. Vermin Fungoid or other Parasitic Pests. White ants are prevalent in the district, but we have found no case yet of their attacking machines. I will let you know later on exactly what developments occur in relation to fungoid and vermin. Missions from Foreign Countries I have referred to missions in my covering letter. Regulations Legislation or Treaties. The Government of the Colony has laid down for the time being that no flight should take place in and round the harbour or over the land at over 150 ft. Permission has been obtained to fly up to 2,000 ft. at Repulse Bay and other parts of the Colony. Areas Prohibited to Civilian Aircraft. I understand that maps have been sent home to the Air Minister making out the fortified areas. Feeling with regard to British Competition. There is no doubt that British firms stand better chance than any other in the Colony. General. The arrangements are being made whereby the Meteorological information, which is already distributed up and down the coast by the Siccewai Observatory of Shanghai, will be distributed by
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