59

or whether, if this is impracticable, the matter should be

brought up again before the Committee of Imperial Defence

for consideration whether deferment of the scheme should be

accepted on financial grounds.

The Air Council understand that the Company is

not at liberty to dispose of the site without the authority

of the Government of Hong Kong, and further that there is

no immediate likelihood of the Company itself proceeding

with the work of reclamation, or with any building scheme.

For their part the Air Council would view with

regret the postponement of the scheme, but the demand for

further economies makes it impossible for them to proceed

with it at the present time on the basis which has hitherto

been contemplated for submission to the Treasury.

t

I am,

[

Sir,

Your obedient Servant,

17/icholym

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