5
 
      (excluding men employed in the production of engines, equipment 
      and fittings).
 
      To achieve the necessary level of production the number of types 
      of aircraft in production has been reduced to a minimum and a 
      new system adopted whereby groups of firms concentrate on particular 
      types.
 
      
 
 
(b) Dominion and foreign production
 
      
 
 
Apart from the above sources of production in the United Kingdom 
      arrangements have been made to develop production capacity in 
      Canada, where orders have been placed with the Canadian Associated 
      Aircraft Ltd. and the Canadian Car & Foundry Co., and negotiations 
      with a third firm are proceeding. An Air Ministry Mission is 
      at present visiting Australia and New Oealand with the purpose 
      of negotiating similar arrangements. An order has also been placed 
      in the United States of America with the object of overcoming 
      deficiencies in certain training and reconnaissance types.
 
      
 
 
(c) Deliveries and Orders
 
      
 
 
The drastic measures taken to increase the basis of aircraft 
      production referred to earlier in this Note are now starting 
      to produce their full effect. The rate of production is at present 
      in the neighborhood of 700 per month and is expected to approach 
      1,000 per month towards the end of the year. For some months 
      past actual deliveries have tended to outstrip production forecasts 
      and estimates of future production may therefore be regarded 
      as reliable. The total number of military aircraft of all types 
      on order by the-Air Ministry (or for which orders have been authorized) 
      is in excess of 20,000. Of this number it is anticipated that 
      some 9,000 will be delivered during the financial year 1939.