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from His Majesty's Government and if the

gaol site is to be given up to the Royal

Air Force and the extension on the North

undertaken it seems only right that is

Majusty's Government should bear the whole

cost of these items unless the whole question of

the incidence of the cost of the Aerodrome can

bo reconsidered.

4. T.O

If the original proposal that His Majesty's Government should bear three-quarters

and this Government one-quarter were accepted

the cost would fall to be divided as follows :-

His Majesty's Government

three-quarters of $3,155,228)=2,366,421.-

Hong Kong Government

(one-quarter of $3,155,228)

= 788,807.-

If however the hole cost of the extension is

borne by His I jesty's Government the cost to

His Majesty's Government would be :-

Grant

£100,000

Gaol site

Extension on North

$989,783.00

$395,978.75

$230,000.00

$1,610,761.75

leaving the Colony to provide the balance,

viz.,

31.539,467.00.

5. Itill be noted from paragraph 7 of

my despatch of 2nd November 1928 that the area

reserved for the Royal Air Force is 20 acres

and the area reserved for Commercial Aviation is

12 acres, which supports the contention of

this

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