CO129-502-5 Acquisition of Kai Tak for an aerodrome- financial arrangements 23-5-1927 - 27-10-1927 — Page 19

annual defence contribution of 20 per cent of its revenue,

and in kore prosperous days made a special contribution of

£250,000 towards the cost of the Singapore Base. In those

circumstances the Colonial Office feel that Hong Kong is

already Go-operating in defence expenditure to the maximum

of its capacity, and that in view of the existing financial

stringency and the hazardous condition of trade with Chira,

which has involved all classes in great loss, it would not

e justifiable to seek to impose as an additional burden on

the community any larger proportion of the coat of this

scheme.

The gume required to be provided by the Government

of Hong Kong and the Imperial Government respectively under

the arrangement proposed above would be 4120,000 and 2178,000.

it inderstood that the Hong Kong contribution would be

·༣

financed by a loan and in view of the Imperial Defence

interests involved the Air Counail concur that the balancs

of the cost should be borne by a grant-in-sid of £178,000 from

Air Votes . It is anticipated that a sum of £50,000 may be

recovered by the nule of outlying portions of the land (see

the Governor of Hong Kong's despatch dated the 18th January

1927, printed as an appendix to C.I.D. 294-C), three quarters

of which would accrue to Imperial funds.

5.

The aerodrome would be the property of the Hong

Kong Government and would normally be used for commercial and

nolice purposes for both land and seaplanes, but the reason

for the proposed substantial contribution from Imperial funds

is that its existence would also provide a very material

addition to our potential defence resources in the Far as t

and would form a new and important link in the chain of air

communications, both for civil and military purposea.

not intended to provide any permanent buildings on the

# zadrow for Air Force purposes, though there will be

It is