CO129-502-4 Acquisition of Kai Tak for an aerodrome- provision of funds 11-1-1927 - 12-5-1927 — Page 94

Rice

97

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ユ

ताक

10

(a) whether it is essential for defence purposes

that land for an aerodrome on the Kai Tak site should be

acquired forthwith;

(b) if so, which of the three following schemes is recommended

(i) the scheme originally submitted in the Governor's despatch of the 18th February 1926, (total cost $1,738,000, with perhaps additional expenditure

not exceeding $275,000 on covering in nullahs, and

less any proceeds of sales of outlying portions)

(ii) the extended scheme submitted in the Governor's

despatch dated the 18th January 1927 (total cost $2,036,500, less proceeds of sales of outlying portions estimated at $500,000)

(iii) a modified scheme representing the completion only of the first stage of (i) and (ii). On the assumption that it would be possible to acquire the necessary land without purchasing the rights of the Kai Tak Company in respect of the whole reclamation area the total cost of the land including the preliminary work already sanctioned would be approximately $620,000.

(c) From what source are the necessary funds to

be provided. The prolonged boycott and the subsequent trade depression have resulted in the exhaustion of Hong Kong's

it has been decided that,

must

liquid surplus and, the Government has been forced to

borrow in order to balance the budget for the current year. The Colony is already paying to His Majesty's Government an annual defence contribution of 20% of its revenue and in more prosperous days made a special contribution of £250,000 towards the cost of the Singapore Base. In these circumstances it is felt that Hong Kong is already cooperating in defence expenditure to the maximum of its capacity

6-13907

and