CO537-(1262-1649) — Page 538

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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 copynght

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CO 537/1427

THE NATIONAL ARCHIVES

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Ref.: 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

international airfield to attract services for her

own benefit, she would be expected to find the money

necessary for building it and could not rely on the

M.C.A. contributing very much. It appeared that as

far as the Colony's own finances were concerned, there

was no question of there being any surplus money

available, but rather of her having already committed

herself to raising loans for other purposes, the

financing of which would tax her resources to the full

to col.

^

for some time. As far as a contribution from the

C.D. & W. funds was concerned, the total allocation

for Hong Kong is £1 million, of which the Governor

more stan can scarcely recommend the allocation of £ million.

The point was, however, made that as Háng Kong is

Treasury-controlled, it might well be in the Treasury

interest in the long run to assist Hong Kong now with

a loan for the building of an airport which might

attract trade and thus enable her to improve her

general economic position and cease the sooner to be a

burden on H.M.G. The general question of financing

.

a project in Hong Kong was, however, left pending

political decisions.

In regard to the relative merits of

Deep Bay and Stonecutter's Island, it was pointed out

that financial considerations aside, Stonecutter's

Island would, if feasible, be a much better proposition

because, unlike Deep Bay, it is in ceded territory

and money spent there would not be liable to be lost

at the end of a period of 40 years when the leased

territories are due to return to China.

the

IT WAS AGREED that the M.C.A. survey

party should be requested to investigate/Stonecutter's

Island project, particularly in view of the fact that

the estimate of £10 million given for developing it

was obviously in the nature of a guess.

Since