i
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7. The Committee are informed that the Foreign Office are of opinion that the purchase of the site in question could not be held to constitute an infringement of Article 19 of the Washington Treaty. The Foreign Office consider, however, that the actual construction of an aerodrome, even if intended for purely commercial purposes, might, owing to its military potentialities, be regarded by other signatories as an increase in the coast defences of Hong Kong and, in consequence, as a con- travention of the Treaty.
They recognise, however, that an aerodrome for a great commercial centre like Hong Kong may before long become as indispensable as an increase in docking accommodation to meet the increasing needs of commercial shipping, and that the other Treaty signatories, if consulted beforehand, would hardly be able to oppose its construction on the grounds that it could be used by military aircraft either in peace
or in war.
8. The Committee would therefore suggest that America and Japan should be approached with a view to discussing the general question of the establishment of aerodromes in the areas covered by the Washington Treaty, and, in particular, the question of constructing an aerodrome at Hong Kong.
9. The Committee have noted that under the existing laws of the Colony it would be possible to acquire the site in question by compulsion at any time. They are strongly of opinion, however, that sanction of the Governor's proposal should not be withheld until the result of the discussion suggested in the preceding paragraph is known. While recognising that it might be ultimately decided that no aerodrome of any kind could be constructed at Hong Kong, they suggest that this is a risk that might well be run, since it appears that if the land is not secured now it will cost a great deal more later.
10.
It is observed that the Governor's proposal to raise the necessary funds for the purchase of the site by means of a lean to be raised locally was made in February 1926, at a time when it was hoped that the boycott at Canton would not be of long duration. Although the boycott has now ended, the Committee suggest that its pro- longation must necessarily have had a serious effect on the financial position of Hong Kong. They accordingly recommend that the Colonial Office should obtain further information from the Governor with regard to the financial aspects of the scheme
11. Finally, the Committee submit the following summary of their conclusious for consideration by the Committee of Imperial Defence:-
(i.) That, from the defence point of view, the acquisition of the Kai Tak reclamation area is desirable, and accordingly recommend that approval in principle should be given to the proposals cu the subject made by the Governor of Hong Kong in his despatch. dated the 18th February, 1926, which were recommended in the Interim Report by the Joint Staffs (Appendix I), and to which commendation was given by the Chiefs of Staff Sub-Committee at their 36th Meeting.
(ii) That as, in the opinion of the Foreign Office, the actual construction of au aerodrome, even for purely commercial purposes, might be regarded as an infringement of the Washington Treaty, America and Japan should be approached with a view to discussing the general question of the establishment of aerodromes in the areas covered by the Washington Treaty and, in particular, the question of constructing an aerodrome at Hong Kong.
(iii) That owing to the prolonged boycott at Canton and its resultant effect on the financial position of Hong Kong, conditions may have changed since the above-mentioned proposals were put forward, and accordingly they recommend that the Colonial Office be requested to obtain further infor- mation from the Governor with regard to the financial aspects of the scheme.
(iv.) That the formation of a local police air unit, being less urgent, should be postponed for further investigation by the Sub-Committee on the omposition and organisation of local forces when that body deals with the local forces of Hong Kong,
corn
(Signed)
2, Whitehall Gardens, S.W. 1,
October 26, 1926.
G. N. MACREADY, Secretary,
Oversea Defence Committee.
3
Reservation by Treasury Representatice.
In my opinion the Hong Kong Government should be definitely warned not to purchase the land required for the proposed aerodrome until it has been definitely ascertained that neither Japan nor the United States of America regard the provision of a military aerodrome at Hong Kong as an offence against the Washington Treaty.
The requirements for a civilian and a military aerodrome are, so far as I know, barely distinguishable; the intention here is to provide a military aerodrome.
The experience of civil flying in this country after years of subsidy is that a commercial profit is not yet in sight. It seems to me improbable that sufficient support would be forthcoming from commercial interests in China to make it a paying proposition within the period of the Washington Treaty.
The Hong Kong Government would have to justify expenditure on proposed purchase of land by explaining its purpose. If the recommendations of the L'ommittee are acted upon in Hong Kong, the purchase or the intention to purchase. and its purpose, will almost certainly become known to the Governments of Japan and of the United States of America before they will have had time to answer the question to be put to them by the Foreign Office.
The result would almost surely be to throw doubt upon the bona fides of the enquiry; and this risk is to be run for the sake of a possible saving in the price of the land. In my opinion there is no reason to suppose from the Governor's despatch of the 18th February last that there is any real risk of a rising market in land values in China within the next few months, but even were conditions in China rapidly to become more staple in the next few months, in my opinion our policy should be to ascertain whether there is any objection on the part of our co-signatories to the Treaty of Washington to the provision of an aerodrome at Hong Kong, and to eudeavour to remove any objection that may be disclosed before allowing any steps to be taken towards such provision.
Treasury, S.W. 1,
October 25, 1926.
(Signed) H. E. FASS.
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