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part of this year to obtain the concurrence of the

Consulting Engineers. This was obtained, and the Crown Agents proceeded with orders for the necessary materials, the shipments of which are now arriving in Hong Kong.

This pipe line (the cost of which is £12,000) is to be regarded as part of a larger scheme for development of water supplies in the Colony; owing to drought conditions in 1928 and in 1929 the whole subject has become of the greatest urgency

to the Colony. The Governor had with the

approval of the Secretary of State intended to finance the pipe line scheme immediately from surplus funds and ultimately from a loan which is to

be raised.

The Governor's present proposal for

assistance from the Fund is recommended for

consideration by the Committee.

(3) Development of the Aerodrome.

The Kaitak Aerodrome in Hong Kong upon which

considerable work has already been done is intended

to be used jointly for civil aviation and by Service

aircraft. It has been undertaken by the Colonial Civil Authorities principally because there is some doubt whether our obligations under the Washington

Naval Treaty would permit construction of a purely

military aerodrome. In view of its joint nature

the Home Government have consented to contribute

£100,000 towards the cost, which was in 1927

estimated

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