33
Imperial Defence that the full scheme
should be proceeded with. While,
therefore, the Secretary of State shares
the view of the Governor that the
postponement of the scheme is no
longer practicable, he has no doubt
that the Air Council will agree that
it has not been due to any premature
action on the part of the Hong Kong
Government that the Government is now
committed to the scheme.
4.
As the Air Council are aware,
the disturbed conditions in China have
resulted in an acute depression of trade
at Hong Kong, and it has been decided
that the Hong Kong Government must
issue a public loan in order to
balance its budget for the current
financial year.
In response,
however, to the suggestion contained
in your letter, the Secretary of State
has sought to examine whether it would
be possible for a larger proportion
of