CO129-560-2 Air Ministry- requirements of land at Kai Tak Aerodromes 8-1-1937 - 5-2-1938 — Page 5

5

G. E.A.

$ 9.3. A. eastery of final note of meadhing

I

was copy

29.1.37

Mr. Gent.

See in minutes under (6) on 53514/35.

We spoke about this.

It would seem that if in fact a premium

is included in the costs of formation and

resumption, the R. A. F. are paying twice for

their lease by the addition of Crown rent. But

I think we can fairly ask that actual cash

payments for putting the land in fit condition

for R. A. F. use should not be reduced if the

land is surrendered to Government before the

end of the 25 years' lease, since these payments

are independent of the length of the lease and

are conditional purely upon R. A. F'. requirements.

I think we should obtain further

information as to the basis on which the

premium is calculated, since, unless it is

very substantially less than the Crown rent

charged, the Colonial Government, if it pays

it itself, will in fact be receiving no net

payment from the lease of its land.

Presumably we should also continue to

resist any attempt to set up an Air Ministry

Lands Account for the reasons given in the

minutes under (6) on 33816/24, since, apart

from the cost to the Colonial Government, it

would apparently mean an admission that it is

the