Since its establishment in 1930, the C.N.A.C. has forged steadily ahead, mindful of its responsibilities in contributing to the material progress of the nation. It has continued to open and develop new air lines, so that C.N.A.C. planes now make schedule flights over no less than four routes, coverrng an aggregate flying distance of 5,280 kilometres.

1. Shanghai.Chengtu Line.-This line enjoys the distinction of being the first of China's civil aviation routes. The Shanghai-Hankow section was first flown over by China Airways in 1929 and, with the merger of that concern in the C.N.A.C., was the first service to be operated by the latter. On October 20, 1929, an aeroplane carrying passengers and mail flew from Shanghai to Hankow in seven hours-then considered quite a remarkable feat-and thereby marked the beginning of commercial aviation in China. This section is 864 kilometres in length and follows the course of the Yangtze, linking two of the most important commercial and economic centres in China. It forms the first stage of the Shanghai-Chengtu service, called for under the terms of the original QN.A.C contract. A daily service is maintained both ways, intermediate calls being made at Nanking and Kiukiang. Until September 20, 1935 service on this route was maintained with Loening flying-boats. On September 20, 1935' tri-motored Ford planes were used, 'nirnediately reducing the flying titne between Shanghai and Mankow by two hours, and also making it possible for a plane to do the round trip from Shanghai to Rankow and back the same day. Since October 23, 1935, Douglas 14-passen-ger Transports maintain a daily service between these two cities. The second section Of the Shanghaiflnengtu run extends westwards from Hankow for a distance of 1,117 kilometres. Its route lies over the upper reaches of the Yangtze-a stretch of treacherous water for ships, but of surpassing beauty. This service was opened by gradual stages from Hankow. The Hankowjchang section, via Skasi, was opened in Decembe; 7930, a distance of 228 kilometres, and in October, 1931, the line was extended to Chungking, adding another 596 kilometres, with Wanhsien as an intermediate stopping-place. Owing to unsettled conditions in Szechuan provmce at the time, extension of the line to Chengtu was delayed for nearly a year and a half. By March, 1933, the situation had improved considerably, and the mall and passenger service was extended from Chungking to the terminus at Chengtu-a distance of 293 kilometres, and flights have been made with scheduled regularity since June, 1934. The completion of the Shanghai-Chengtu tine enaMes the traveller to avoid the most dangerous stretch of ukriver travel encountered in the passage through the awe-inspiring Yangtze Gorges by steamer, and furthermore opens up a rich and important part of the country otherwise inaccessible by speedy means of communication. There is a daily urvice on this section, both ways, for which the Stissson and Loening flying boats are used four days in the week, the former between Chungking and Chengtu and the latter between Hankow and Chungking. On the other days a thrice-weekly Express service is being operated between Shanghai and Chengtu, the fast Douglas Transport planes enabling the 1981-kilometre journey to be made in seven hours of flying time.

2. Shanghai-Peiping Line.-According to the contract which brought the C.N.A.C. into being, the second line to be operated, after the Shanghai-Chengtu service, was that between Shanghai and Peiping, and calls were to be made at Hsuchow, Tsinan, and Tientsin. When the service was commenced in April 1931, it was found that as the mute followed was substantially the same as that of the Tientsin-Pukow Railway, the latter offered too much competition for business to be carried on successfully, and after sustaining considerable loss, the air service was swpended in December of the same year. It was then decided to shift the mute further eastward, and follow the coast, with stops at Tunghai (Haichow), Tsingtao and Tientsin, doing the trip in 7 1/2 flying hours. 'The new mute has the advantage of serving important commercial centres without encountering railway competition, and it was found possible to economtze considerably in the initial outlay by utilizing most or the equipment acquired for the original and abandoned route. Since January 10,1933 regular flights have been maintained on the new line, which coven a distance of 1,197 kilometres, and in view of the resultant increasing profits, the change has proved to he mote than justified. However on May 14, 1935, a more rapid service was put into operation between Shanghai and Peiping, na Nanking, Tsingtao, and Tientsin, by the use of the Douglas Transport, the longer distance of 1327 km. via Nanking being coveted in 4 1/4 hours' flying time. At first two round trips weekly were made by the Douglas Transport, but the popularity of this service induced the compaiiy on June 9, 1936, to increase the shedule to three round trips weekly, the journey from Shanghai to Peiping and Lack being made by the same plane in one day. It would not he out of place to emphasize here the fine work of the various crews In completing flights of 2654 km. in a single day as part of their regular schedule.

3- Shanghai-Canton Line.-This servke is 1,623 icLiometres long, and serves as a connecting link between two of the greatest cornmercial cities in China. Throughout its whole course it follows the coastline, first southwards and then westwards, via Wenchow, Foochow, Arnoy, and Swatow. Mthough it was stipulated in the contract that the C.N.A.Q should open this line not later than July, 1933-in order to avoid forfeiture of its franchise-fulfilment of this clause was found to be out of the question, in view of the fact that the losses incurred by the Corporation in establishing the earlier services abovementioned made it unable to shoulder the additional financial burden that the Shanghai-Canton line would involve. Test flights however, had been made in anticipation of better financial conditions. when a postal blockade of "Manchukuo" was instituted after the invasion of the North-East Provinces, the need to expedite the handling of mail between China and Europe, as well as the greater urgency of bringing the South-West into closer contact with Central and North China, stimulated the Ministry of Communications to make new arrangements, instead of waiting for the financial position of the C.N.A.C. to improve. As the result of efforts in this direction, the Shanghai-Canton service was put into operation in February, 1933. After a brief period, the flights were discontinued for some months, owing to shortage of planes and other necessary equipment, but since its resumption in October, 1934, the schedule has been followed with unfailing consistency. Three round trips are made weekly by Douglas Dolphin flying beats which have a cruising speed of 140 miles per hour and can carry six passengers, in addition to the pilot, co-pilot, and full load of mail. With this equipment the distance of 1623 km. between Shanghai and Canton is covered in less than seven hours' flying time. Since November 5, 1936, Hongkcng has been included on this line as a regular port of call.

3 (a) - Canton-Hanoi Extension.-Commencing from February 13, 1936, a weekly Shanghai-Paris air mail service has been in operation. The Shanghai-Canton air-liners used to stop overnight at the southern city, to resume their flight to Hanoi the following morning, where connection is made with the planes operated by Air France between Hanoi and Paris. Mail from Shanghai takes eleven days to reach Paris under the present scheme, but as soon as faster machines are used between Hanoi and Paris, it is hoped to reduce the time to 6 1/2 days only. At present this service has been taken over and operated by the South-West Aviation Corporation.

4. Chungking-Kweiyang Line.-The poverty of means of cornmunication in Yunnan and Kweichow is such as to call for urgent measures of improvement. High mountain-ranges, coupled with changeable weather conditions of extreme severity, often interrupt telegraphic communication with outside provinces, while modern transportation facilities aft almost entirely lacking. All this points to the establishment of an air-service to Yunnan and Kweichow as a paramount necessity. Early in September, 1933, there fore, the Ministry instructed the C.N.A.C. to plan a line from Chukingicing, via Kweiyang, capital of Kweichow, to Kunming (formerly known as Yunnanfu), capital of Yunnan Province. The total length of this line is 755 kilometres, and at its northern terminus allows connection with other national airways that traverse ChinL In October one of the Corporation's planes took off from Chungking for an aerial survey of the proposed route, but found the dilflculties of weather and terrain to be such that the plan had to be postponed. A few months rater another survey, on a more ambitious scale, was carried out, covering the five provinces of Hunan, Kwangtung and Kwamgsi, Yunnan and Kweichow. With a larger objective m mind-that of establishing a network of lines covering South-West China-practical aviation routes were sought in different directions. The conclusion rtached fmm these observations was that high-powered planes with at least two motors are required for safe flying over the high mountain ranges, while the difficult nature of the country makes it necessary to have complete ground equipment, induding an adequate number of radio-stations and emergency landing-fields, before commercial flying is feasible.

As the whole scheme was too costly to be undertaken forthwith, the Ministry had to he content to carry it out by gradual stages, starting with the Chungking-Kweiyang-Kunming air line. This service, after arduous preparations lasting several months, was finally inaugurated on May 4, 1935. Till then the only means of overland communication between these cities was by pathways winding over high mountains and down deep valleys, necessitating 12 days of arduous travelling by sedan-chair from Chungking to Kweiyang, and a further 12 days from the latter place to Kunming. However, by aeroplane Kweiyang is brought within ninety minutes from Chungking, and a similar timedistance from the Yunnan capital. Three hours by air, as against 24 days of toilsome travel, is striking testimony to the tremendous value of aviation in these remote regions. A tn-motored Ford aeroplane is used for the sake 0f greater safety. Since September 16) 1936, flights over the Kweiyang-Kunrning section have been discontinued and a twice-weekly service between Chungking and Kweiyang is established instead. Kunming, however, is now served by an Eurasia air line from Changan (Sian), via Chengtu.

In view of the fact that this air route was not provided for in the original contract with the C.N.A.C., it is being operated by the latter independently on behalf of the Ministry. Independent accounts are kept for the line, and all profits and losses belong to the Miffistry.