TEL. NO. HOLBORN 3434.

Any communications on the subject of this letter should bə addressed to :-

THE SECRETARY,

AIR MINISTRY,

ADASTRAL HOUSE,

KINGSWAY,

LONDON, W.C.2.

and the following number quoted :—

S.33302 (F.5)

Sir,

Thies

WED

18 AUG1936 C. O. REGY

на

AIR MINISTRY

LONDON W.C. 2

15 Agu

25

53514

35

79%

1936.

With reference to your letters of the 8th December, 1935 2 and the 28th February, 1930 and subsequent correspondence under reference 53514 regarding the financial arrangements for the transfer of land at Kai Tak for Royal Air Force purposes and the question of the extension of the aerodrome, I am commanded by the Air Council to state, for the information of the Secretary of State for the Colonies, that they have deferred a reply pending a review of requirements arising out of the recent decision of His Majesty's Government to strengthen the air defences of Hong Kong.

Anad (5)

Copy to stay ko.

Transfer to wo

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Settled.

So far as the Council can foresee, it will be necessary to acquire, in addition to the Royal Air Force base at Kai Tak and the site at Patheung, at least one more aerodrome, for which a site at Ha Tsuen has been provisionally selected.

3 In the se circumstances, the Council are of opinion that the Hong Kong Government should be asked to reconsider the basis upon which they have hitherto suggested terms for the acquisition of land for Air Force purposes, and trust that they will be willing to provide land, not only for the new aerodromes at Fatheung and Ha Tsuen, but also for the extensions at Kai Tak and any further land required on similar terms to those accorded to

knowledgefin the War office for the recent acquisition of land for Army See 53654/36

tion

purposes at Kai Lung Tsai, i.e. that any claim for Crown rent will be abandoned and that the cost of acquisition will be confined to the cost of resumption.

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The Council are encouraged to hope that the Hong Kong Government will be prepared to adopt this basis of settlement, as they were informed, following discussions between representa- tives of the Army, the Royal Air Force and the Governor of Hong Kong in 1934, that the local Government would be prepared to provide land free of charge for additional Royal Air Force units approxi- mating in number to the four squadrons which it is now proposed to locate at Hong Kong.

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be

If the foregoing proposal is acceptable to the Hong Kong Government, the Council would be prepared, notwithstanding the very substantial contribution previously made from Imperial funds towards the cost of the construction of the aerodrome at Kai Tak, to recommend the Lords Commissioners of His Majesty's Treasury to agree to a further contribution of 50% of the cost of the extension of the aerodrome which is being undertaken by the Hong Kong Government.

6

has

as been

With regard to the question of terms of relinquishment of land and buildings when they are no longer required for Royal Air Force purposes, the Council suggest that the terms recorded

The Under-Secretary of State,

Colonial Office,

S.W.1.

/in

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