section between Hong Kong, Macao and Canton, it is generally believed that until the novelty of the experience had worn off or until some serious accident should unfortunately occur, aeroplanes or seaplanes might very probably secure a good deal of patronage from the public merely as a form of pleasure trip. From a business and utilitarian point of view however, it seems very doubtful whether under the trading conditions now existing in this area there is any real demand for air services either as mail or passenger carriers, and I would venture to express the opinion that until these conditions alter very materially, the successful development, as a commercial enterprise, of aerial transport in South China is mainly dependent upon the possibility of organising aeroplane or seaplane services for the carriage of light but valuable cargo. New Air Routes Projected. The only project likely to be put into immediate operation is one for an air service between Hong Kong, Macao and Canton, organised by a French citizen, Monsieur C.F. Ricou, Manager of the Macao Electric Light Company, in co-operation with the Curtis Company of the United States. The promoters of the above scheme have notified the Hong Kong Government of their intention to apply for registration, under the Hong Kong Ordinances, of a Limited Company to be known as the “Macao (Canton & Hong Kong) Aerial Transport Company Limited”, with a Capital of Hong Kong $50,000 in 5000 shares of $10 each, for the purpose of operating seaplane services for passengers, cargo and mails between the ports above-mentioned, with the possibility of subsequently extending the service to Shanghai, via Swatow, Amoy and Foochow. No formal application for registration of the above company has, however, yet been made to the Registrar. The sum mentioned above as the Capital of the projected Company would obviously be entirely inadequate to meet even the very heavy initial outlay, and must be regarded as a merely nominal figure. The Hong Kong Government has not been asked to accord any special rights or privileges to the above enterprise, and would not, I feel sure, be disposed to do so. I understand, however, that pending the receipt of instructions as to the general policy of His Majesty’s Government in the matter of aviation, the Colonial authorities will not raise objections to the passage of seaplanes (subject to certain conditions) between Hong Kong and Macao. One Curtiss seaplane for the use of the above Company has already arrived at Macao, and others are reported to be en route. I am also informed confidentially that the Company has just ordered a powerful motor launch, as seaplane tender, from a well known British engineering firm at a cost of £2,500 and that the purchase of three similar vessels from the same firm has also been discussed. Eighteen American aviators have passed through Hong Kong on their way to Macao, so it is expected that a commencement of the service will shortly be attempted. The prospects of its success, as a commercial undertaking, are regarded by business men in Hong Kong as being far from promising. I gather however from information supplied to me by a gentleman well acquainted with Monsieur Ricou that the promoters regard their present enterprise mainly in the light of an experiment, and that if the scheme should be found at all workable in practice the main interests of the Company would
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