CO537-(1262-1649) — Page 533

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CO 537/1427

THE NATIONAL ARCHIVES

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restrictions. Further information is given in the enclosed "Terms and Conditions of supply of National Archives' leaflet Please note that this copy is supplied subject to the National Archives' terms and conditions and that your use of it may be subject to copyright

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Defence Committee in South East Asia, so that this Committee will have an opportunity of expressing their views on the question to the Chiefs of Staff Committee, if they care to do so.

I would strongly urge that the above action should be taken as quickly as possible. If, as the result of it, the Chiefs of Staff decision is reversed and it is held that there is a defence requirement for a new airfield, this will, I think, go a long way towards a solution of the other difficulties.

(Signed) N.L. Mayle.

13.10.46.

THE NATIONAL ARCHIVES

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d that your use of it may be subject to copyright

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CO 537/1427 Please note that this copy is suppked subject to the National Archives' terms and conditionsupply of National Archives' leaflet.

restrictions. Further information is given in the enclosed Terms

I am sorry to have delayed this file a few days but the project involved is a big one, (estimated total cost 24 million) and we have been going into it as carefully as we could in Finance Department.

Our general feeling is that the construction of a modern international airport at Hong Kong is likely, to be a necessity if Hong Kong is to preserve its position as the premier trading and financial centre for South China and therefore that while we should clearly go for the biggest contribution we can get from the Air Ministry on grounds of the defence interest, we ought not, in the Colony's own interest, to rule out whatever Colonial contribution may be needed to bring the project to fruition. The actual capital expenditure would clearly have to be financed by means of loan and in Hong Kong's existing financial position that is Loing to give rise to difficulties. I would, however, be a matter to explore with the Treasury how auch loan contribution as is necessary could be raised and if the case for the construction of this airfield is as stron as it appears on the face of it to be, we would hope to get active Treasury co-operation.

In Kr. Acheson's absence I pase this file through Mr. B.D. Edmonds. When General Department have seen from a defence point of view I sullest that it would be a good thing if ... Bigg could call a meeting when the finance, defence and other interests involved could be explored more easily than is possible in minutes. We have also before us (on separate papers) proposals for the construction of an airport also estimated to cost £4 million at Changi near Singapore. That I suggest might conveniently be discussed at the same time.

(Intά.) J.B.W.

21.10.46.

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