SECRET

5.

Paragraph 9 of the paper refers to the need to extend the

runway at Kai Tak airport. We expect the runway to be extended

by more than the stipulated 1,000 feet but cannot yet say when a

final decision will be taken.

BACKGROUND

6. Hong Kong's small unit of fighter aircraft was withdrawn in

1967 as part of the Defence Review reductions. Since then air

cover of the Colony has been maintained by periodic visits of

aircraft fra Singapore, When the decision to withdraw from

Singapore by 1971 was announced the Governor expressed his concern

that after that date air cover would not be available; he

suggested that a unit might be re-established within the Colony

at lower cost by use of local resources of manpower and aircraft

servicing facilities and said that the Colony would contribute

to the coat.

7. In May 1968 Ministers approved "a proposal to station Hunter

aircraft in the Colony, subject to further examination of the

possibility that these aircraft might be manned and serviced

from local resources", Subsequent studies indicated that local

resources could be used for servicing but that local manning would

not produce significant economies and wore undesirable on grounds

of efficiency. Detailed proposals have been put forward by the

Kinistry of Defence on the basis that no part of the cost should

fall on Defence votes. The cost to Hong Kong, if the Colony

were prepared to accept it, would be of the order of £300,000 for

the capital cost of the aircraft and £335,000 per annum for the

recurrent costs.

SECRET

/ B.

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