(HKK 1/41)

Hong Kong Department,

44

7 July, 1969

Thank you for my copy of your letter of 3 July to Gill about Hong Kong Airport.

i hasten to remind you that Hong Kong's oase hinges on the extent of the UK civil aviation interest in Kadi Tak,

If you will look back at the memorandum I submitted to the Treasury in sommery you will see the firet attempt at quantifying this made by le heard of Trade in paragraphs 14-20. It is admittedly not assy to massure our advantage from Kai Tak with such precision that the figure is unassailable but I had thought that by now it was not in dispute that we derived considerable i-enefits. What -9 are looking for surely are ways and means of recognising the set. It was for this reason that I did not declà on the self interest element in the proposed package deal although i did refer briefly to this in my seconů paragraph.

In other words it is we who should be looking for an appro- priate puid are ang and I cannot conceive that the cost to н.4.0. of supplying the three ingrediants of the package listed in my parogruph 6 will be out of balance (to our disadvantage that la) with the value of Hong Kong Airsport to us.

(*. 3. Carter)

C. D. Lucao, Beq.,

Treasury Chambers,

Great George Street,

London, 5.4.1.

conies te:

3. G. "with F#q.. Beard of Trade,

Enq.

6. C. icketts,

J. Gill, Esq.

. H. J. Steel, Esq.,

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