Enclosure No.4.
· 3 -
47
a capital sum of $400,000. I explained to Mr. Vaughan
Fowler that before I could give any promise of a subsidy
I must know the total amount to which this Government would
be committed and in this connection it is necessary to
abandon any idea of financial assistance from Canton.
In his letter of 24th May, 1928, copy of
6.
which is enclosed, Mr. Vaughan Fowler set out his
requirements and these have since been discussed with my
technical advisers and with Mir. Vaughan Fowler himself.
They presuppose in the first instance the free use, at any
rate for five years, of the Kai Tak landing ground and
slipway in course of completion. Apart from this the
requirements may be summarized as follows:-
(1) Free use of a Hangar to be provided by this
Government. The cost of this building as a typhoon-
proof structure which would be of permanent value to
the Colony is estimated at $110,000. The question
of free use would require reconsideration at the end
of five years.
(2) A subsidy of $300,000 spread over five years (of
which $100,000 would be required in the first year)
less a sum estimated at $50,000 to be subscribed by
Macao.
It is felt to be by no means improbable that Hong Kong
will have to guarantee the full amount.
(3) Radio Service. Mr. Vaughan Fowler would be content
with the promise of free radio service for one year
for all "service" messages connected with the
The matter to be reconsidered
Company's machines.
at the end of a year's experience.
(4)