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25
3
Aerodrome will form the subject of a
separate despatch.
3. One point of great importance
has emerged as a result of Mr. Dawson's visit.
The correspondence leading to the division of the cost of forming Kai Tak gave grounds for believing that the suggestion of a division, under which the Colony was to pay one-quarter of the cost and that three-quarters vas to be paid by the Imperial Government was receiving favourable consideration, and it was a serious disappointment when your telegram of the 25th January 1928 definitely fixed the subsidy at £100,000. This disappointment became accentuated in view of the fact that the final estimate of cost is considerably above the original calculation; the most recent total estimate is $2,529,250.00 exclusive of the additional expenditure recommended by Ir. Dawson, towards which the Imperial contribution is only £100,000 (equal to $989,783.00) leaving the Colony to find a sum of $1,539,467.00 an amount 50% greater than the Imperial contribution.
4. A discussion of this point with
Mr. Dawson in connexion with the extra
$230,000.00 his suggestions are estimated to require, created the impression that the
Imperial Subsidy had been set at a low figure in view of the possible return to be secured by
the