397

10.

E

I recognise the fact that conditions in the Colony, and perhaps in China, will make seaplanes generally preferable to land planes, yet I consider it essential The policy outlined in the Air to reserve sufficient ground for landplanes also. Ministry notes, to which reference is made in paragraph 6 above, shows that these may become necessary. Lighter-than-air craft, the development of which is fore- shadowed, will, I understand, require nearly as much ground space for mooring, &c., as it is proposed in this scheme to reserve for landplanes. Moreover, there is no other ground in the Colony or in the New Territory which offers even moderately good facilities for conversion into an aerodrome; and, if the Kai Tak ground is lost, no other could replace it.

11. Pending further experience of local flying conditions, and indications as to the best policy to pursue, I consider it advisable to acquire more than the bare minimum of ground necessary to deal with the comparatively modest requirements of the present day. It is for these reasons that I put forward a suggestion for the acquisition of the whole of the Kai Tak reclamation area (coloured buff on the plan). Much of the work of reclamation has yet to be done, but it is, in my view, necessary to regain complete control of the whole area, retaining the power to carry out further reclamation as circumstances may demand.

12. The time for negotiating with the Kai Tak Company is not inopportune. The Company is in some financial difficulties, and would probably welcome a release The Canton boycott and its effect upon from its liabilities and responsibility. Hong Kong have made matters no easier for the Company, while the fall in land values, resulting in some degree from the fact that building progress seems now to have satisfied the demand, makes it very improbable that the Company can hope for much success in the reasonably near future by the continuation of the original programme of reclamation and development.

13. On the other hand, I confess to a complete faith in the future of the Colony, and in the expanding development of the Kowloon Peninsula. In due time land on the reclamation will be in demand, and such areas as experience may by then have proved unnecessary for the purposes of the aerodrome will be readily disposed of The presence of the aerodrome itself, and the consequent developments required in the vicinity, will also tend to an appreciation of land values throughout the district.

14. The sum required for putting this suggestion into effect is a large one, submit that and beyond the immediately available resources of the Colony. But the scheme for acquiring the Kai Tak property fully justifies the provision of the necessary funds by means of a loan; and the legalisation by Ordinance of the issue of Treasury Bills in accordance with the terms of your Circular despatch of the 28th June, 1922, as the first step necessary, will be undertaken without delay,

The

13. The arguments in the despatch of Sir R. E. Stubbs, to which you refer. apply to the development of the Air Force equally with other branches of the Colony's defence and I hold out no hope whatever of voluntary assistance from private firms in support of further expenditure for the Garrison or the Air Force. suggestion that British concessions in China should contribute to expenditure incurred in Hong Kong, on the ground that the Garrison is utilised wherever agree with protection is called for. is put forward very tentatively; and I Sir R. E. Stubbs in his view that it is at present no more than a line of thought It is, however, a matter which which it may be worth while to pursue further. would naturally be investigated by the Foreign Office through His Britannic Majesty's Minister at Peking, and this Government can hardly at this stage venture to reduce the general suggestion to any more definite form.

16. The plan* (enclosure No. 2) supplies the detail required to complete this despatch; and it will be seen that the expenditure I suggest involves an estimated Of this sum, 738,000 dollars is the estimated cost of total of 1,738.000 dollars. completing the entire reclamation (a work which would be undertaken by the Government at its own choice of time) and 1 million dollars it is estimated would be sufficient to buy out the Kai Tak Company.

17. I have, therefore, the honour to request authority to negotiate with the Kai Tak Company for the purchase of their rights over the 170 acres which appear on the plan coloured buff at the estimated cost of 1 million dollars; and to finance this operation by the issue in due course of Treasury Bonds.

18.

This despatch was considered in draft at a meeting of the Hong Kong General Defence Committee held on the 17th February, and the Committee unanimously concurs in the despatch.

I have, &c.

(Signed)

C. CLEMENTI, Governor, &c.

*

Not reproduced.

Enclosure No. 3.

PART I Aircraft for Police Purposes.

It is considered that aircraft would be useful for the following functions:-- (a.) To observe the Frontier and deal, by machine gun or bomb, with any attacks

on our pickets.

(b) To pursue and attack any marauding parties.

(c) To pursue and attack any pirates.

(d) In the event of civil disturbances, to observe and report any large collection of natives, and, if necessary, to disperse them with bombs of mild tear (?) gas.

(e.) Transporting a Police Officer or other official to outlying islands, e.g.,

Lantao, at high speed.

(f.) Keeping a good look out for any particular ship.

(g.) Exercise moral effect.

2. Type of machines required.

In view of the nature of the country, seaplanes are advisable.

It is thought that the most suitable machine would be two-seaters, 200 to 250 h.p., fitted to carry light bombs, 2 machine guns (one fixed and one Lewis gun), and preferably W/T the latter would render a shore set desirable also. (These machines would be of smaller dimensions and performance than the Fairey 111D seaplanes carried by H.M.S." Hermes.'')

3. Numbers required.

Four machines are suggested.

This number would allow for one, and probably two, being always ready for

service.

4. Base.

The Kai Tak reclamation would be very suitable. Requirements would be-

Hangar for four machines.

Workshop.

2-ton crane on seawall.

Wooden floats moored to seawall, under crane.

(The combination of crane and floats would render a slipway unnecessary.)

5. Personnel suggested.

3 Pilots.

2 Wireless Operators and Machine Gunners.

14 Mechanics,

10 Unskilled Chinese.

It might be possible to supply the Pilots and W/T Operators from the local Police Force, with little, or no, addition to present numbers.

6. Approximate Cost.

Capital Expenditure.

£

Erection of hangar, machinery, &c.

4,000

12,500

1

16,500

or $141,429 at 2s. 4d.*

4 Seaplanes, with W.T. guns, &c.

• Calculated to the nearest dollar.

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