CO129-497 - Public Offices - 1926 — Page 398

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There is, however, no intention of doing so at the moment, and conse- quently international questions regarding the Treaty (Washington) do not

arise

"The establishment of a base for seaplanes at Hong Kong presents fewer difficulties than forming a landplane base. Since, however, the only justifica- tion for forming a base at all would be to resist Air aggression from the Mainland, whatever aircraft were provided must possess the capacity to oppose with success not merely the few inefficient aircraft at Canton, but high-class modern machines flown by skilled foreign pilots.

"It is not the policy of the Air Staff to utilise seaplanes for action of this nature, since, though they have undoubtedly a certain capacity for offence and defence, they are inferior in this respect to landplanes of a corresponding class. The establishment of a Volunteer Air Unit, which might perhaps combine defence, commercial and police functions, is a question which falls under a different category to that of forming a Service Air Base. It is intended shortly to review the strength and provision of local Defence Forces for all British Colonies, with a view to making recommendations to Colonial Governments. Until this enquiry is completed, the Air Staff are not in a position to state positive views as to the formation of a local Air Unit at Hong Kong.

The development of a commercial Air Base cannot be classified with any measures undertaken for the defence of Hong Kong. Whatever the potential value of Commercial Aircraft may be for War purposes, the development of a Commercial Service should proceed on purely Commercial lines.

**In short, the Air Ministry will not, under present conditions, attempt to establish an Air Base at Hong Kong. If, however, Commercial conditions were to call for a Commercial Air Service at Hong Kong, the Air Ministry would encourage such developments. The desirability of establishing an Air Base at Hong Kong, if and when such a course becomes practicable, should, however, be borne in mind, and any projected building construction which might have a restrictive influence on flying facilities on or in the vicinity of suitable sites for Aerodromes and Seaplane Bases should be carefully watched."

The consideration of Police and of civil aviation demand foresight in the provision of space for a shore aerodrome, and, in my view, the time is not far distant when the development of military aviation in China will demand a modification of "these proposals for an Air Base" It is necessary, in any event, having regard to the dearth of suitable aerodrome sites in this Colony to be prepared for the possibilities to which the "Notes" refer.

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7. The adequate defence of this Colony demands the continuous presence of The aircraft; and proper provision, even for seaplanes, includes space ashore,

Hermes has latterly utilised, as has been stated in paragraph 5 above, a small portion at the west end of the Kai Tak reclamation; and this and the reclaimed the ground in front of the sheds must, in the absence of any other suitable site Colony, continue to be reserved against such developments in aviation in the near future as may require shore accommodation. On the advice of Captain Talbot, R.N, and Wing-Comniander Cull, R.A.F., a more suitable area within the Kai Tak boundaries has been selected for future developments; this area is bordered red on the plan which accompanies this despatch. Much of it is, however, as yet unreclaimed, the existing water-line being indicated in blue; but the quay wall shown is practically complete across the whole front of the proposed reclamation forming the Kai Tak concession.

8. Recent experience with aircraft in the Colony has shown that they prove of great value in assisting the work of the Police, and I propose that a small squadron The report of Captain should be permanently stationed here for that purpose. C. P. Talbot, R.N., which forms enclosure 3 in this despatch, sets out the functious of the squadron, and suggests in full detail the type and number of machines, and the requirements for the Base and the Personnel. It provides also an estimate of the expenditure, capital and recurring. Any expenditure for the acquisition of land necessary for an aerodrome will be additional to the estimated capital expenditure of £16,500.

9. There still remains for consideration the question of the possible develop- ments of Civil Aviation in general. Tentative efforts have already been made on certain routes from Hong Kong, and it cannot be doubted that geographical considerations alone will make the Colony an essential stage in any scheme that may be developed either for communication with the interior of China or for connecting China with Singapore, and so with lines to Europe and to Australia.

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10. I recognise the fact that conditions in the Colony, and perhaps in China, will make seaplanes generally preferable to landplanes, yet I consider it essential to reserve sufficient ground for landplanes also. The policy outlined in the Air Ministry notes, to which reference is inade in paragraph 6 above, shows that these may become necessary. Lighter-than-air craft, the development of which is fore- shadowed, will, I understand, require nearly as much ground space for mooring, &c., as it is proposed in this scheme to reserve for landplanes. Moreover, there is no other ground in the Colony or in the New Territory which offers even moderately good facilities for conversion into an aerodrome; and, if the Kai Tak ground is lost, no other could replace it.

11. Pending further experience of local flying conditions, and indications as to the best policy to pursue, I consider it advisable to acquire more than the bare minimum of ground necessary to deal with the comparatively modest requirements of the present day. It is for these reasons that I put forward a suggestion for the acquisition of the whole of the Kai Tak reclamation area (coloured buff on the plan). Much of the work of reclamation has yet to be done, but it is, in my view, necessary to regain complete control of the whole area, retaining the power to carry out further reclamation as circumstances may demand.

12. The time for negotiating with the Kai Tak Company is not inopportune. The Company is in some financial difficulties, and would probably welcome a release from its liabilities and responsibility. The Canton boycott and its effect upon Flong Kong have made matters no easier for the Company, while the fall in land values, resulting in some degree from the fact that building progress seems now to have satisfied the demand, makes it very improbable that the Company can hope for much success in the reasonably near future by the continuation of the original programme of reclamation and development.

13. On the other hand, I confess to a complete faith in the future of the Colony, and in the expanding development of the Kowloon Peninsula. In due time land on the reclamation will be in demand, and such areas as experience may by then have proved unnecessary for the purposes of the aerodrome will be readily disposed of. The presence of the aerodrome itself, and the consequent developments required in the vicinity, will also tend to an appreciation of land values throughout the district.

14.

The sum required for putting this suggestion into effect is a large one, and beyond the immediately available resources of the Colony. But I submit that the scheme for acquiring the Kai Tak property fully justifies the provision of the necessary funds by means of a loan; and the legalisation by Ordinance of the issue of Treasury Bills in accordance with the terms of your Circular despatch of the 28th June. 1922, as the first step necessary, will be undertaken without delay.

13. The arguments in the despatch of Sir R. E. Stubbs, to which you refer, apply to the development of the Air Force equally with other branches of the Colony's defence; and I hold out no hope whatever of voluntary assistance from private firms in support of further expenditure for the Garrison or the Air Force. The suggestion that British concessions in China should contribute to expenditure incurred in Hong Kong, on the ground that the Garrison is utilised wherever protection is called for, is put forward very tentatively; and I Sir R. E. Stubbs in his view that it is at present no more than a line of thought agree with which it may be worth while to pursue further. It is, however, a matter which ould naturally be investigated by the Foreign Office through His Britannic Majesty's Minister at Peking, and this Government can hardly at this stage venture to reduce the general suggestion to any more definite form.

16. The plan* (enclosure No. 2) supplies the detail required to complete this despatch; and it will be seen that the expenditure I suggest involves an estimated total of 1,738,000 dollars. Of this sum, 738,000 dollars is the estimated cost of completing the entire reclamation (a work which would be undertaken by the Government at its own choice of time) and 1 million dollars it is estimated would be sufficient to buy out the Kai Tak Company.

17. I have, therefore, the honour to request authority to negotiate with the Aai Tak Company for the purchase of their rights over the 170 acres which appear the plan coloured buff at the estimated cost of 1 million dollars; and to finance bis operation by the issue in due course of Treasury Bonds.

18. This despatch was considered in draft at a meeting of the Hong Kong General Defence Committee held on the 17th February, and the Committee

animously concurs in the despatch.

I have, &c.

(Signed)

* Not reproduced.

C. CLEMENTI, Governor, &c.