CO129-511-13 Civil Aviation- proposals for experimental passenger and mail service 28-7-1928 - 28-12-1928 — Page 47

Enclosure No.4.

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47

a capital sum of $400,000. I explained to Mr. Vaughan

Fowler that before I could give any promise of a subsidy

I must know the total amount to which this Government would

be committed and in this connection it is necessary to

abandon any idea of financial assistance from Canton.

In his letter of 24th May, 1928, copy of

6.

which is enclosed, Mr. Vaughan Fowler set out his

requirements and these have since been discussed with my

technical advisers and with Mir. Vaughan Fowler himself.

They presuppose in the first instance the free use, at any

rate for five years, of the Kai Tak landing ground and

slipway in course of completion. Apart from this the

requirements may be summarized as follows:-

(1) Free use of a Hangar to be provided by this

Government. The cost of this building as a typhoon-

proof structure which would be of permanent value to

the Colony is estimated at $110,000. The question

of free use would require reconsideration at the end

of five years.

(2) A subsidy of $300,000 spread over five years (of

which $100,000 would be required in the first year)

less a sum estimated at $50,000 to be subscribed by

Macao.

It is felt to be by no means improbable that Hong Kong

will have to guarantee the full amount.

(3) Radio Service. Mr. Vaughan Fowler would be content

with the promise of free radio service for one year

for all "service" messages connected with the

The matter to be reconsidered

Company's machines.

at the end of a year's experience.

(4)