4
A.
are set out in the first enclosures to the two
despatches. It appears from paragraph 4 of the despatches that the Air Ministry has accepted these terms (slightly modified in the case of the
area (a)) or such modified terms as may ultimately
be decided upon, and from (1) on this file that the
Treasury have approved of the purchase of the two
areas.
The Governor, however, suggests an alter-
native arrangement analagous with that which re-
gulates the provision of land required by the War
Department. Under such an arrangement, the Govern- ment of Hongkong would, through the medium of an
Air Ministry Lands Account, provide the two areas
free of all cost other than the actual cash dis-
bursement incurred by the Hongkong Government in
forming and resuming the land.
This alternative arrangement appears to
be unnecessary because both the Air Ministry and the Treasury have agreed to the original proposals; and undesirable (apart from the considerable finan-
cial loss to the Hongkong Government which it in- volves) because it would mean an admission that the duty of Colonial Governments to provide land
for military purposes free of charge extends to
the provision of lands for Air Force, and presumably for Naval, purposes as well. The Acceptance of
the alternative arrangement would be to create an undesirable and dangerous precedent.
Section 5 of the Defence Contribution
Ordinance