48 END

and it may be that the company will refuse to consider any offer unless they are paid a large sum in advance to which, of course, there would be considerable objection. I considered it desirable to mention this development as if the company does decide to close down in Hong Kong it may hold up the proposed Kai Tak extension indefinitely. It is, therefore, most important that a decision on this scheme should be reached

at the earliest possible moment. I will keep you informed of the progress of the negotiations with the company.

12. The dredging plant would, of course, be required for Deep Bay if it were decided to proceed with that scheme.

Copies sent to:-

Ministry of Civil Aviation

11

#1

#1

Air Ministry

Treasury

Mr. W.C. Gawthorne Registry Tels. Mr. L.T.G. Sully Mr. D.F. Hubback

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