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of Government's intentions regarding the construction of an
airfield at Pingshan was made to them. If, as I hope, it is
decided to carry out the Deep Bay project, I recomend that the
Chinese Government should be officially informed that a civil
airport conforming to modern safety standards is about to be built
on the Deep Bay site in the New Territories, owing to the inade-
quacy of the present airfield at Kai Tak, and that a note to this
effect should be transmitted to them through His Majesty's Ambassador,
Wanking, before a public announcement is made.
7.
The construction of an airport at Deep Bay would mean
that the existing aerodrome at Kai Tak would be no longer required
and that the land at Kai Tak would be available for sale apart from
a small area adjacent to the sea wall which would be retained for
a seaplane base. The proceeds of the sale of Kai Tak which at
present comprises an area of approximately 345.4 acres, would be
offset against the cost of the Deep Bay scheme. The old aerodrom
which was approximately 183.6 acres in extent was, however, enlarged
by the Japanese during their occupation, and claims for compensation
have already been received from the various owners of land and
property in the area affected. Detailed investigations have not yet
been made into the treatment accorded by the Japanese to these land-
owners, but it appears that such compensation as was paid was totally
inadequate and in computing the probable receipts from the sale of
Kai Tak, I have considered it advisable to deduct the estimated cost
of such outstanding claims, It is, of course, not possible to produce
any accurate estimates at the present time of land values in this
area in, say, 1950. The price that will be realized will depend on
many factors including the political and economic situation and the
plans which may have been adopted by then for the development of
this portion of New Kowleon. It has been calculated that the sale
value of both the old and the new airport areas at Kai Tak will be
in the neighbourhood of $18,750,000 but against this outstanding
claims are estimated at $8,000,000. The estimated net value of Kai
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