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Due to the low demand the production of the BH-3 flying boat is stopped after only 7 aircrafts.There have been found some weaknesses in this design. The speed performance was okay, but the control characteristic wasn't good and had the habit which tends to stall. Especially take off difficulty was fatal as a flying boat.

The naval Hudong-Zhonghua Shipbuilding is due to complete two Maritime Customs Service Ships today, after which they will run trials and commence a period of operational training.

The Chinese Navy decides to scrap the obsolete E-Class submarines, these vessels are very old and a modernization is considered as unprofitable. The boats are to be replaced by the Gunyi class.
Furthermore, the leadership of the Navy has decided to build more ships of the Luhai and Hai Ou class. These ships are designed to counteract the growing threat posed by enemy submarines.

The Ministry of Transport announces the signing of a purchase agreement for 10 ENA C-25 Ponchito twin-engine civil transport aircrafts for the Southwest Airlines. In addition, the Chinese government has also acquired the license to build this type of aircraft. The planned delivery of the aircraft from Peru is December of this year.

An expedition under the lead of the famous chinese archeologist Li Ji found ancient ruins in the Ordos Desert (bottom). The aim of this expedition is to find the until today still unknown burial place of the great Genghis Khan (top left). The Ordos Desert is considered as a possible area of the tomb of the the great Khan (see ancient map with written note on the tomb of the famous Mongolian hero). The expedition and the excavations are financed by the Shanghai businessman Lao Che (top right), who is a famous owner of one of the largest private collections of historical finds.

Admiral Yibo Yunsheng poured some tea in his cup and told his secretary to contact the 10th sub-flotilla at Tai-Pei and either get Rear Admiral Zhou Enlai on the phone or tell his office, the he should call back as soon as possible. In fact, Enlai was unreachable, but fifteen minutes later the call came from TaiPei, the headquarters of the 10th Subflotilla.

Admiral Yunsheng said "I am sorry that I have not contacted you for such a long time, but I wanted to wait until I can definitely say something to you. And that is the case now."

"Okay. So the plan that we have discussed together is now slowly becoming reality ?" asked Rear Admiral Enlai.

"Exactly. That's why we should meet as soon as possible."

"Okay. Should I come to Beijing or will you fly over here to us ?"

"The latter - and in two days. I will probably land at 0900. Will you seend me someone to pick me up, Zhu, are you so nice ?"

"Of course I will arrange it and in the meantime, I will also start our planned action."

After its modernization and finishing its operational training the chinese Battlecruiser HICMS Liu Xing is solemnly taken in service. The ship is now operational again for the next few years and a major boost to the Chinese fleet.

The light Cruisers Suhitou and Yaofeng, completed late last year, have now finished their initial operational training and have taken in service.

With a solemn ceremony the launching of two new vessels for the chinese auxiliary fleet take place at the Sun Yat Sen Shipbuilding. The two vessels are the minetransporter Lauting and the netlayer Pengwu.

The production of the chinese standard tank Gongji I is on full swing, in parallel Norinco works on a combat efficiency upgrade. Upon completion of the shipment of the Gongji tanks to Syria and the fruitfull and growing cooperation with SMIC (Syrian Military Industrial Corporation), representatives of CTMCO travel to Damascus to discuss the possibility of deepening the relations between the two companies.

The research vessel Xue Long is preparing for a research trip to the Indian Ocean. Since the loss of Wu Feng, the surveys had been discontinued in the "Roaring Forties", but now this activity is to be resumed with this research trip.

Bin-Li Chung and Wen-Chen Chu found the "Taiwan Power Company" (also known as "Taipower") in Taipei. The company's field of activity is the generation, transmission and distribution of energy.

At Mako the Daily-Air airline is founded. This local airline serves only as a connection between the individual islands of the Pescadores Islands group, so Wang'an and Qimei is served.
To further fill up the airline's fleet, the following call for tenders will be published:

Nanjing Rolling Stock Ltd. presents its new diesel locomotive, the NY1 Weixing. It's a 4-axle B'B' single-cab diesel-hydraulic locomotive for use on mainline passenger service.

Yesterday was a red-letter day for the workers of different chinese shipyards. It saw the keel laying of four additional submarines of the Guiyu - class. Such vessels will be vital in the defense of the nation from any aggressor.

In a solemn ceremony, the first 4 boats of the outdated E-Class are decommissioned. After all weapons and ammunition have been removed from the boats, the ships are towed to the shipyard for scrapping.

The catapult ship MS Dongkeng of the Eurasia airline is due to leave Shanghai for the position of the MS Dalingshan, which is currently off Guam. The ships serve the maintenance of the Eurasia flying boats, which currently serve the route to Guam.

Formosa's commercial register today notes the incorporation of Yulon Machinery Co. Ltd and Ching-Ling Yen as general manager. The company manufactures accessories for automobiles.

Liaoning Motor Works Ltd. is the largest manufacturer of trolleybuses in China. All over in the Chinese Empire the vehicles of this manufacturer are in use. But even in the friendly countries, these buses from China can be found. After the successful model LW-36; Liaoning now presents its new model the LW-48.

Long tough and intensive negotiations with the government of the Philippines unfortunately do not bring the desired success and thus the air traffic from the Chinese Empire to the Philippines remains closed until further notice.

The government of the Chinese Empire invites the government of Bharat and Persia to deepen the trade relations between the countries. Joint talks are scheduled for the middle of September.

U 303 ran with low speed through the sea. The mission area was the coast around Hong Kong. Only the usual shipping traffic to and from Hong Kong was seen in the last hours.

"What have we here?" Captain Huang Chia-Chi said as he looked again through the periscope, to check the propeller noise, which were reported by the sonar room.

At a distance he clearly saw the Philippine battlecruiser Mindanao and his escort looming against the horizon. He had quickly determined this with a look into the identification book.

"Seems like they are about to join soon the Lema Channel and visit Hong-Kong." he said to himself

Today Mr. Wu Chen founded the Chuen Kee Ferry Ltd. It's a ferry operator in Hong Kong. It operates the Aberdeen, Mo Tat Wan to Wailingding Dao route.

Chinese Minister of Energy Ming Pi Wei inaugurates the Fengman Dam with a solemn ceremony. After years of construction, the last section is completed today and the power plant now generates 550 MW.

Ambassador Su Tseng-chang welcomes the Chinese delegation led by Captain Guo Shuyan. The delegation consists of teams for the bought ships, the ex-Armada destroyers and torpedo boats. After completion of the test trials, the official handover should take place.

The first four boats of the outdated E-Class submarines are docked in the two big drydocks of the shipyard. After removing the batteries and other recyclable internals, the scrapping of the boats starts.

The Capital Commercial Register has reported the formation of a new firm, it is known as "SINOHYDRO". In addition to the core business of water and power plant construction, the company also offers the construction of roads, bridges and other industrial buildings.

The oldest trade fair in China opens it's doors today - the Canton Fair starts. There are exhibitors from all over China but also from other countries. The fair leans to export trade, though import business is also done here. Various types of business activities such as economic and technical cooperation and exchange, commodity inspection, insurance, transportation, advertising, and trade consultation are other activities that are also commonly carried out at the fair.

Today is an important day for the China Trans-Pacific Steamship Company. Their fleet is being further increased by the "SS Mongolia". The two-screw steamship will serve on the South America route and can house almost 500 passengers.

The Asia Cement Corporation (ACC) opened a second production plant in Xincheng, due to the huge demand of cement in Formosa.