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done to Kai Tak to bring it up to I.C.A.Q% standards as they exist at present, but I am advised that the standards which are prepared for normal airports are unsuitable and should be modified to suit Hong Kong and that it is safe to operate at Kaj Tak on standards considerably lower than those advocated by I.C.A.0.

5. In this connection, I might add that we have in the past been advised that it was impossible to land four-engined planes at Kai Tak ør to operate at night. Practical experience has shown, however, that both these predictions were unfounded.

6. A copy of the plan to extend Kai Tak is being sent by savingram. I am advised that this project is practicable from the engineering point of view. It would be the intention first to complete phase 1 of the project which envisages the construction of a runway 9,000 (repeat 9,000) Reet long, 1,000 (repeat 1,000) feet broad (including taxi tracks) plus a triangular portion at the western end of Kai Tak (marked blue (? on) the attached plan) by means of reclamations in Kowloon Bay. This would meet present requirements and Phase II and III (marked yellow and red) would be undertaken only if they proved necessary at a later stage.

7. The cost of Phase I is estimated very roughly by the Director of Public Works to be about £2,000,000 (repeat £2,000,000) and the cost of the whole project to be about £3,000,000 (repeat £3,000,000). would take about 2 years to complete.

Phase I

8. I assume that the interest free loan of £5,000,000 originally promised for an airport would be available for the construction of the extension to Kai Tak.

9. In view of le long delay that has occurred over the construction of an up-to-date airport in Hong Kong I should be most grateful to receive your concurrence in this scheme at the earliest possible moment.

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In this connection, I feel that I should invite attention to the fact that the Netherlands Harbour Works, which so far as I am aware is the only firm in the Far East which can undertake dredging operations and the construction of foundations for sea walls, is on the point of closing down their establishment in Hong Kong. They have been considering this step for some years owing to the poor prospects of ever obtaining contracts again in China and now in view of the unsettled political situation the Head Office has decided to withdraw all plant immediately. They may be willing to defer such action if they are guaranteed work to a certain value within the next twelve months.

11.

This Government has several reclamation schemes under consideration a if two or three can be started within the near future it may be possible to persuade the company to remain. Negotiations are now in progress

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