S. SfS. Sittvilson
12.0 sclae 60
The question of the Kaitak Reclamation is
largely one of defence, but this telegram raises
an important issue as regards the harbour also, and,
as the Imperial Shipping Committee are considering
a comprehensive reference on Hongkong harbour, it
seemed only prudent and courteous to give them a
chance of expressing their views on the harbour
aspect. We hope to have a report next Friday
(25th March), which will be helpful on the financial
and the navigation side. As a decision may then
have to be taken hurriedly, I send on the memoranda on the following issue separately:-
At the preliminary discussion last
Friday, Mr. Hichens, the representative of British
industries, raised a protest against the contract
being given to a foreign firm, and prophesied
attack in Parliament etc. It is obvious in this
case that time is of the essence of the matter and
that, if the project is approved, military considera
tions will probably rule out the delay involved in
calling for tenders here, getting a British dredger
out, etc. This is to say nothing about the cost,
which would presumably be much increased if men and
had
plant to be sent out from here. I take it,
therefore, that the Secretary of State will prob-
ably be prepared to defend giving the contract to
a foreign firm on the spot, if needs be, in view of
the critical situation in China and the urgent need
for an aerodrome in these parts. Mr. Amery may
however
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