CO129-518-8 Colonial Development Fund- requests and recommendations for monetary assistance for various projects 30-8-1929 - 28-2-1930 — Page 3

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Mh G

Fir G. Handle 6.5.24

Mr. Eastwood left copies of these telegrams

with me, and asked that the Department would let him

have their views on the Governor's proposals.

The Governor puts up three proposals for

immediate consideration, that is,

(1) Engines for the Kowloon Canton Railway;

(2) Cross Harbour Water Pipes;

(3) Development of Aerodrome.

As regards (1) and (2), the purchase of the

engines and pipes has already been authorised (see

No. 4 on 62 26 and No. 16 on 62735), and it is quite

possible that the Crown Agents have already

contracted for them. It seems obvious that it is

not the sort of expenditure which is intended to be

met from the Colonial Development Fund, which is meant

for expenditure which the Colony itself is not able

to afford. I think, therefore, that these must be

definitely ruled out. The reasons will, no doubt,

be explained to Hong Kong in due course.

As regards (3), there has been much

correspondence about Imperial assistance towards the

cost of the Aerodrome (see 52753/28 and 62753/29).

There is clearly no possibility of getting the

decision revised so far as it relates to work already

on foot (in any case such work would, as stated above,

not fall within the proper scope of the Fund). There

remains work proposed but not yet decided upon.

This includes: (a) proposed new hangar;

(b) enlargement of the Aerodrome as

recommended by the Air Ministry

expert (see No. 30 on 52753).

As regards (a), the position is that Hong Kong

proposed