Before I leave this now very tiresome subject
I ought to say that all this is for yourself alone and completely off the record. We have got it from ECGD of course, but they were most insistent that at this stage they ought really to have said no more than "no
comment". In any case it coved att be out of date tomaraw. Effe 3
3. We are getting near to the crunch with Kai Tak: incidentally, thank you for your 21/8 of 3 April; this is interesting news. I would not like to forecast Hong Kong's chances except that there are now pretty
hope clear indications that the most they can expect to get out of or by way of a loan is £3 million, or rather less than half what they have asked for. This £3 million
the Treasury think ought to come out of aid funds but
we are slap up against ODM's strong objection to
providing aid for so wealthy a territory as Hong Kong.
It will not be long I think before the issue becomes
one for Ministers rather than officials so that we
may not have too long to wait. If you should run into Cowperthwaite and the matter comes up (I do not suggest that you look for an occasion) you might say that it would be useful at this end if he would provide as
quickly as possible the sort of cost/benefit analysis from a developmental viewpoint for which we have asked.
hera At this end We, or rather the Board of Trade, can calculate the advantages to UK civil aviation of improving the airport, but we cannot calculate the
advantages to Hong Kong. So far Hong Kong, as you know have taken the line that there are no such advantages or very few, to themselves. This is not really
compatible with their expressed willingness to contri-
bute some £7 million to the project and it is fairly
clear that their attitude is dictated by tactical
considerations. At the stage reached in discussions
here, and certainly if aid funds are to be used for the
purpose, we will have to admit, and indeed demonstrate, that the extensions are beneficial to the Colony as well.
. I heard recently from your successor, Blackwell, whom I do not know, but you may. I answered, of course the letter he wrote introducing himself but not at
length, saying that I would prefer to wait for the
visit he expects to make in May before discussing the future with him more fully. I may say that I admitted that in the past you had probably had good grounds for
/thinking
low. I
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