CO129-502-5 Acquisition of Kai Tak for an aerodrome- financial arrangements 23-5-1927 - 27-10-1927 — Page 59

TEL. NO. HOLBORN 3434.

Any communications on the subject of this letter should be

addressed to:-

THE SECRETARY,

AIR MINISTRY,

ADASTRAL HOUSE,

KINGSWAY,

LONDON, W.C.2.

NATIONAL

SCHEME

and the following number quoted :-

DISABLED

SECRET.

S.23467/S.6.

sir,

AIR MINISTRY,

LONDON, W.C.2.

76 7450

July, 1927.

2 58

30044 A (20)

I am commanded by the Air Council to refer to the

proceedings of the 225th Meeting of the Committee of Imperial

Defence held on April 6th 1927, and to the decision taken

thereat in regard to the acquisition of the Kai Tak site

at Hong Kong for an aerodrome.

It

The measures necessary for implementing that

decision have subsequently been orally discussed between

representatives of the Colonial Office and Air Ministry.

was understood that Mr. Secretary Amery was prepared to

support the proposal whereby the Hong Kong Government would

contribute approximately £125,000 towards the cost of the

scheme, leaving approximately £150,000 to be found by the

Air Ministry, less such sum (possibly £50,000) as could be

obtained by the sale of outlying portions of the site which

would not be required for the aerodrome.

A new factor has now arisen. The Air Council have

been given to understand that the expenses of the Shanghai

expedition render it of the utmost importance that savings

should be effected in the monies at present taken for works

expenditure by all three fighting services. If effect is

to be given to this request it will be impossible for the

Air Ministry to provide this year any sum approaching the

amount which has so far been suggested for the acquisition

of the Kai Tak aerodrome.

In these circumstances it appears to them to be

for consideration whether the Hong Kong Government should be

invited to provide a much larger portion of the total cost

The Under Secretary of State,

Colonial office,

S.W.1.