CO129-502-4 Acquisition of Kai Tak for an aerodrome- provision of funds 11-1-1927 - 12-5-1927 — Page 73

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Telegram from the Governor of Hongkong to the

Secretary of State for the Colonies.

Dated 15th April.

(Received Colonial Office 7.30 a.m. 15th April 1927)

Confidential. Your telegram of 11th April Colony cannot bear any part of aerodrome or dredging expenditure except by borrowing. As regards financial outlook local

opinion predicts a slack period of trade for some

months owing to disturbed conditions in China but is

not pessimistic as to the future generally. Trade has recently shown signs of improvement in Hongkong and goods are reaching China somehow. Great care is

being exercised on Government's finances and the utmost economy in public works extraordinary expenditure will be made in next year's in order to balance the budget but works vital to Colony's

future such as aerodrome and dredging should not in my opinion be postponed.