CO129-502-5 Acquisition of Kai Tak for an aerodrome- financial arrangements 23-5-1927 - 27-10-1927 — Page 18

18

October, 1927.

.23467/3.6.

BECKET

th

2)

ir.

I am commanded by the Air Council to refer to the

proceedings of the 718th meeting of the Committee of Imperie

Defence and also to the recommendation of the Committee of

Imperial Defence made at their 225th meeting on the 6th april

1927, to the effect (1) that the immediate acquisition of the

Kai Tak site at Kowloon for an aerodrome was most desirable

for reasons of Imperial Defence; (2) that the question of

providing the necessary funds was one for the Treasury and

other Government Departmente concerned to deal with.

2.

I am to state that the question has now been exple:

between the Colonial office and the Air Ministry, and that it

is estimated that the total cost of acquiring, reclaiming and

levelling the site will be about £299,000. This figure

includes the cost of buying out the Kal Tak Company, of partial

reclamation of the area by earth cutting on land, of covering

in nullahs, extending a flying gap, completing sea wall

nullahs, providing a seaplane basin and approach roads, and

of completing reclamation by dredging. With the exception o

the last item, which would fall entirely on Colonial funds,

it is proposed by the Colonial Office that the cost should be.

shared between the Colonial and Imperial Governments in the

proportion of one quarter to three quarters.

3.

The Colonial Office point out that the prolonged

boycott and the subsequent trade depression have resulted in

the exhaustion of Hong Kong's liquid surplus and that the

Government has had to borrow in order to balance its budget.

The Colony is already paying to His Vajesty'a Government an