CONFIDENTIAL

3.

The Jyear

Projectiona

probably until early in the New Year. It was neither in 7 your interests nor in ours that this undesirable belief should be allowed to grow, and nothing short of what Sir David said would have dealt with the matter sufficiently.

There is one further point which perhaps I should repeat, although it has also been made in previous correspondence from the Governor, and that is that the timing of the actual provision of funds is not important, and would not arise in any case to any substantial extent until the financial year 1971/72. What is important is that we should know H.M.G.'s final intentions before the end of the year and before we go to tender.

In my final talk with Sir Leslie I gave him some approximate figures of capital commitments over the next several years, in order to put the expansion of the airport in perspective. On reflexion the sum total of these figures is not very meaningful, particularly as the incidence of expenditure depends on various factors which must be still unknown. It would perhaps be more meaningful to say that whereas the cost of Kai Tak will be of the order of £7 million, our annual capital expenditure is likely to rise from £46 million next year to £65 million in 1973-74, leaving aside any figure we may agree for capital contributions to the defence costs.

Your ever

Низи важен.

Varman Wahnen

Leslie left here in good heart and health, and I hope Enjoyed his wisit. this

CONFIDENTIAL

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