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charges (other than necessary maintenance

for the accommodation of any air units

which may in future be stationed there.

3.

That the Air Ministry shall decide

what portion of the site can be disposed of.

Any receipts from portions of site

disposed of will belong to. Hong Kong Government.

Reasons for deci sion are

(a) Imperative need for economy in Budget.

(b) Your admission in telegram of 4th May that

aerodrome was of vital importance to Colony and

that you were prepared to meet cost by loan

(c) It is not usual for Air Ministry to meet

any part of cost of civil aerodrome and treaty

obligations prevent establishment of military

27 in 30044 A.

aerodrome.

Trust you can see your way to proceed

with aerodrome on conditions stated without

recourse to further borrowing.

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