CO129-502-4 Acquisition of Kai Tak for an aerodrome- provision of funds 11-1-1927 - 12-5-1927 — Page 84

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red on the plan. The portion outside the blue line still remains to be reclaimed. I therefore adhere to my 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 extension marked ")" on the plan, which lies outside the reclamation area, and is needed as a "flight gap."

3. The figures of cost set out in paragraph 16 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

The revised cost is, therefore, as follows:-

cross the area.

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 extension "D"

Dollars. 1,000,000

738,000

275,000

23,500

2,036,500

C

3. The area

recommended by Wing Commander Leckie for a Commercial Aerodrome is edged in RED with the flight gaps hatched in RED at "B," "D" and "C." 4. It will be noted that the area A exceeds that of the previously suggested area, being 780 yds. x 875 yds. and is not as large as some of the Civil and Military aerodromes mentioned in Wing Commander Leckie's notes; but, in addition the flight gaps are provided to give increased lengths of run.

5. The cost of this aerodrome area "A" containing 5,423,100 sq. ft. or 124.58 acres in accordance with the new recommendations is estimated to be (at the rate of 23.5 cts. per sq. ft.) 1,275,000-00 dollars, to which must be added the cost of covering in the nullahs as now asked for, viz., 275,000·00 dollars, making a total of 1,550,000.00 dollars.

6. It will be noted that the flight gap at "D" is not within the area to be resumed from the Kai Tak Company and will need to be acquired separately. The estimated cost of forming this area "D," including the cost of resumption at 15 cts. per sq. ft., would be 23,500.00 dollars.

January 8, 1927.

(Signed)

HAROLD T. CREASY,

Director of Public Works.

Of this total, it is hoped that at least 500,000 dollars 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 telegram 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 financing the scheme for a Hong Kong aerodrome, to which, as I understand from your telegram of the 10th December, great importance is attached on Imperial grounds.

6. As regards the bearing of article 19 of the Washington Treaty on the proposal to construct an aerodrome in Hong Kong, I have the honour to point out that this aerodrome will be constructed primarily for commercial and for police purposes, and in this respect I take it the Colony has complete freedom of action. After its construction the aerodrome will also (as at present intended) be made available by the Hong Kong Government for use by Ilis Majesty's Air Force, and in this connection I invite attention to a letter, dated the 16th October, 1926, written by Lieutenant- Colonel L. R. Hill, Military Attaché at Tokyo, to Sir John Tilley, who forwarded a copy of it to the Foreign Office under cover of a third personal note dated the 21st October, 1926. Lieutenant-Colonel Hill refers to the intention of the Japanese Ministry for War to station one of the new formations of Military Air Force (No. 8 Wing) in Southern Formosa, and adds:-

"The American Military Attaché informed me recently that he has reported to Washington that the move is contemplated, and has learned that the question (ie., of the bearing of article 19 of the Washington Treaty on such a step) has been referred to the legal authorities in that capital, who have ruled that, in their opinion, the step would not constitute an infringement of the Washington Treaty.'

I have, &c.

(Signed) C. CLEMENTI,

Enclosure to Appendix.

Report by the Director of Public Works.

Honourable Colonial Secretary,

Governor, &c.

I forward a plan in duplicate showing the area proposed to be resumed from the Kai Tak Company coloured BUFF. Negotiations for the purchase of this area are in hand.

2. The area remaining to be reclaimed to complete the reclamation is hatched in BLUE and is estimated as stated in paragraph 16 of (7) to cost 738,000.00 dollars.