CO129-560-3 Air Ministry- financial responsibility for extensions to Kai Tak Aerodrome 25-1-1937 - 9-6-1937 — Page 2

C. I'd "Land"

"K".

1.

Treasury

25.1.37.

Transmits copy of letter to the Air Ministry.

2.

Air Ministry (Secret)

/2/37.

d

Gives particulars and conditions of Air Ministry contribution to cost of Kai Tak.

The Treasury do love to make their little

points about lack of "express understanding as to

the incidence of the cost" of the extension, and

"had the Air Council been consulted before the work

was put in hand". However, they have conceded the

main point.

: Inform Hong Kong that Treasury have

sanctioned contribution from Air vote up to one half

of actual cost of extension, and a maximum of

$150,000, subject to the undertakings set out in

(1) and (2).

They have sanctioned immediate payment

of $100,000, any further payment falling due within

the maximum authorised to be issued on completion of

the work to the satisfaction of the Air Council.

? Inform Crown Agents.

(Sgd.) P. Rogers.

20/2.

The undertakings required from Hong Kong

need not be expected to lead to difficulty.

The first three are the same as those which

already apply to the aerodrome, and the fourth

relates to a situation which is not likely to occur

during our tenure of the New Territories, and in

any case does not commit the Hong Kong Government to

any particular course of action.

Include in secret air mail despatch to the

Governor the substance of this letter (omitting last

paragraph)