CO537-2187 — Page 134

grateful for any comments you may have on this draft.

I hope that the doubts expressed in your letter

Case for of the 25th February as to the desirability of a

reassuring statement will be settled by paragraphs 12

and 13 of the enclosed draft. I would only add that

we were advised last year that Hong Kong would not be

able to raise money in this country on the same terms

as other Colonies because of the uncertainty which is

felt about its future. I am a little doubtful whether

H.M.G.'s blessing would help us unless it took the

form of guaranteeing a loan. But this, possibly,

I underland,

1411 involve an Act of Parliament, which would havson; this to doubt, bring forth a de

maging

me make it impossible for

ving

reassuring statement, probably of a much more

specific nature than is proposed in Appendix V to

the enclosed draft memorandum.

As regards the second point referred to in your

letter, there have been some recent developments on the

irport project. The survey party has reported that it

ould cost something of the order of £23,000,000 to

onstruct an airport on the only site available in the

eded portion of the Colony. The estimated figure for

he Deep Bay site in the New Territories is £4,000,000.

looks as though, for financial reasons alone, we shall

ve to decide in favour of the Deep Bay site, but we

all naturally want to be sure, before embarking on

penditure of that magnitude, that if the lease of the

w Territories is surrendered, continued control over

e airport will be one of the essential conditions

tached to the surrender of the lease.

a

Dalton, Cripps and Alexander will, of course, be

erested in this question, the first two from the point

view of British trade in China and the Far East, and

Guaranter

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xander from the defence aspect.

Cripps also takes

ery deep personal interest in Hong Kong. I would

e to refer the draft paper to

all altan

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for