CO129-597-3 Estimates 1950 22-2-1949 - 3-11-1950 — Page 49

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comments and without prejudice to further consideration on either side. Some or all of items suggested, or others which might appear appropriate, might be accepted in whole or part as Hong Kong's responsibility; consideration would naturally have to take chief account of probable level of expenditure on various items, which can at present be foreseen only very approximately.

5.

(a) Supply without charge of Government services

such as water.

(b) Waiver of rental on Government property. (c) Cost of requisitioning, by payment of

compensation to owners of property requisitioned for Services or of property rented as alternative accommodation for dis possessed Government Departments. I have under consideration your savingram No. 629, proposals in which would need to be considered in light of this suggestion. Rough estimate by Service Departments of cost of requisitioning this year is £250,000;

years.

this will increase in subsequent

(a) Cost of works required for defence purposes,

in whole or part. Present estimates of total programme for whole of emergency

include hutting and other buildings £1,500,000, gun sites etc. £200,000, roads and tracks £1,200,000.

(e) R.A.F. use of Kai Tak. It is suggested that

while Kai Tak should continue to be designated a joint-user air-field the pool account should for the time being cease to be maintained; that is that Hong Kong should not charge the R.A.F. for the services and facilities which the Colony provides, while R.A.F. similarly would make no charge for any services provided by them for joint use.

Pending decision on questions discussed in paragraphs 2 and 4 above, I should be glad to know if, to save time in getting on with the work, you would agree that costs should lie where they fall in the first instance in such cases as works undertaken by P.W.D. for military authorities; I understand that there has been some difficulty over this point locally. Such agreement on your part would of course in no way prejudice subsequent readjustment in the light of further decisions.

6.

Apart from any question of increasing revenue such * my telegram No. 1135 touched on, any variation in the level

trade, would, I recognise, be bound to influence Hong Kong's capacity to contribute. I suggest that such variations should be taken account of by periodical review rather than by highly hypothetical allowances now and therefore that your consideration of this telegram should be based on present circumstances on Undertanding that there should be an annual review of the rate of any contribution offered.