Foreign News: Airways

In Nanking last week the Chinese Ministers of Communications, Foreign Affairs, War and Finance met solemnly. Soon it was reported they had cancelled the air mail and passenger contract of the China Airways Federal Inc., U.S.-owned subsidiary of President Clement M. Keys's* Intercontinent Aviation Inc. for "violation of national rights of China and interference with the postal administration."

Said China Airways' president, Ernest B. Price:

"During the past four months the Chinese have given us little if any cooperation and the service has grown increasingly difficult, as obstacles have been created regarding landing fields and anchorages for the Loening amphibian planes which we use. The company has overlooked these difficulties in its desire to provide a cheap and efficient air line in China. We have already spent $500,000 in gold on the service and our final loss is very likely to be greater than that."