CO129-497 - Public Offices - 1926 — Page 303

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The cost

completion of the reclamation work. involved is estimated at $1,738,000 or something over £200,000. Of this sum 81,000,000 would be required

to buy out the Kai Tak Company and the remainder to

It complete the entire reclamation in easy stages.

is recognised that the provision of so large a sum is beyond the immediately available resources of the Colony, and the Governor proposes that the operation should be financed by the issue of Treasury Bills in London under the procedure contemplated in our circular despatch of the 28th of June 1922 (copy attached)

(1) and (2) above have already been considered by the C.I.D. It will be seen from C.I.D.paper No. 617B in 31711/25 that the Chiefs of Staff recommended the strengthening of both our Naval Forces on the China Station and of the Military Garrison of Hong Kong. regards the latter, the provision of an additional British and an additional Indian battalion was suggested as a minimum. The Chief of Staffs report was

L

Ás

considered by the C.1.D. in July last and the conclusions of the Committee will be found in the minutes enclosed in 36967. While it appears to have been generally agreed that a reinforcement of the Hong Kong Garrison was desirable it was felt for political reasons it would be better that no reenforcement should take place until the present crisis in China had passed. As regards

an increase in the Naval Forces, it was hoped that the provision of aircraft carrier would suffice for the moment. (In the meantime it was suggested that certain

enquiries

enquiries should be set on foot and the War Office letter C.I.D.2630 shows that these have now been completed. We have definitely resisted a suggestion that it would be possible to meet from Hong Kong funds the cost of permanent barracks for an increased garrison).

As regards (3) the question of the establish- ment of an aerodrome at Hong Kong is entirely dependent on the interpretation to be placed on Article 19 of the Washington Treaty which prohibits an increase in the coast defence of the Colony. Previous papers show that we are here on highly controversial ground. The F.0.view which is, on

the whole, shared by the Service Departments, is that while the creation of a new military aerodrome would probably violate the Treaty it would be permissible

Flat Arm for a fleet of armed aircraft to make temporary use of the existing landing ground in an emergency; but the whole position is so doubtful that the F.0. have recently suggested that the only way to work the Article satisfactorily is to have a conference with all the interested Governments with a view to reaching agree ́d conclusions. It is proposed that the question should shortly be brought before the C.I.D. when the F.O.representative will suggest that the United States and Japanese Governments should be invited to a general discussion of the problem.

It will be seen from Appendix B to the joint memorandum enclosed in 6630 that the proposals for an air force are based on the assumption that the Washington Treaty applies only to Naval and not to l

Air