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12.
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The time for negotiating with the Kai
>
Tak Company is not inopportune. The Company is in
probably some financial difficulties, and would welcome a release
from its liabilities and responsibility. The Canton boycott and its effect upon Hongkong have made mauters 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, and beyond the immediately available resources of the Colony. But
I submit that 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 accord- ance with the terms of your Circular despatch of
28th June 1922, as the first step necessary, will
be undertaken without delay.
A
15