Pan American in China

Japanese aviation interests, which have long tried to extend airlines into China, last week had something to fume about. They learned that Juan Terry Trippe, whose Pan-American Airways Inc. contracts to deliver mail in 31 Central and South American countries and in Alaska. had bought into the Chinese airways monopoly. For years Juan Trippe's ambition has been to run every major U. S. air service operating outside the U. S. He now does. From North American Aviation. Inc., which is merging with General Aviation Corp. (TIME. March 27). Pan-American had acquired, by exchange of stock, the two-year-old China Airways Federal. Inc. It was the last important extra-U. S. aviation interest outside the Pan-American system.

China Airways Federal owns 45% of China National Aviation Corp.. whose planes and personnel come from the U. S. The Chinese Nationalist Government owns the rest. China National runs a daily service between Shanghai, Nanking and Hankow (567 mi.). Twice weekly its planes carry on from Hankow up through the gorges of the Yangtze River--some of the world's grandest scenery--to Chungking. The line also operates thrice-weekly between Shanghai and Peiping (790 mi.). If & when Pan-American reaches across the Pacific (or around it. via Alaska), the franchise between Shanghai and Hongkong, 630 mi. from Manila, will be valuable.

To U. S. nationals in the Far East, the line which their countrymen operate is a source of gratification. It is one of the few enterprises in China in which the U. S.. China's good but gullible friend, really leads.

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