32

provision of an aerodrome at Hong Kong

is urgently necessary, but the Secretary

of State has nevertheless been in tele-

graphic consultation with the Governor

in case it should prove possible to

postpone the scheme. It is, however,

the considered opinion of the Governor

that as resumption works are now in

/

progress and the land has been entered

on, the Government is morally bound

to pay to the Company the purchase price

of the site as soon as the amount has

been agreed upon. The Governor adds

that, failing payment on demand, interest

on the purchase price at the rate of 8%

would be chargeable.

3.

The Air Council will doubtless

recall that it was as a result of the

pressing recommendations contained in

Air Ministry letter No .S.23467/S.6. of

the 3rd of February, that the work of enlarging

the site was first commenced, while the

further works now in progress followed on

the recommendation of the Committee of

Imperial

(6 in A)

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