CO129-502-4 Acquisition of Kai Tak for an aerodrome- provision of funds 11-1-1927 - 12-5-1927 — Page 106

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previous recommendation that this Government should resume.

from the Kai Tak Company all its rights over the whole area

coloured buff and should further acquire the small exten-

sion marked "D" on the plan, which lies outside the reclama-

tion area, and is needed as a "flight gap".

3.

The figures of cost set out in paragraph sixteen

of my secret despatch referred to above require amendment

both because this small extension has to be acquired, and

because the Air Force representative advises the covering

in of certain nullahs which cross the area. The revised

cost is, therefore, as follows:

Amount estimated to buy out the

Kai Tak Company

Amount estimated to complete the

reclamation

Estimated cost of covering in

nullahs

Estimated cost of resuming exten-

sion "D"

$1,000.000

738,000

275,000

23.500

$2.036.500.

410.

C22567

Of this total it is hoped that at least $500,000 will be

recoverable by this Government by the sale of outlying

portions of the area, which may eventually prove not to

be required for the aerodrome.

4.

I communicated these figures to you in my tele-

gram of the 10th December, 1926, and I regard the matter

as of such importance to this Colony as to justify this

Government in proceeding with the scheme from loan funds. if you concur. I propose to negotiate with the Kai Tak

Company to ascertain the exact terms on which the area could be resumed and to await your reply to my telegram

before completing the transaction.

5.

I should be glad to learn whether His Majesty's Government would be willing to assist this Colony in finan-

cing the scheme for a Hong Kong aerodrome, to which as I

understand from your telegram of the 10th December great

importance