3. THE VIEW WAS PRESSED BY COWPERTHWAITE AND OTHERS THAT IF H.M.G. WERE UNABLE TO PROVIDE FINANCIAL ASSISTANCE FOR DEV- ELOPMENT OF AIRPORT FROM WHICH THEY DERIVED GREAT FINANCIAL ADVANTAGE HONG KONG SHOULD BE ALLOWED TO CONTROL HER OWN
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AFFIC RIGHTS AS ALLEGEDLY WAS DONE IN CENTRAL AND EAST AFRICA BEFORE INDEPENDENCE. THE EXAMPLE WAS QUOTED OF THE RECENT REFUSAL BY THE U.K. TO ALLOW THE RESUMPTION OF U.A.R. TRAFFIC RIGHTS WHICH WOULD LEAD TO A LOSS TO HONG KONG OF POUNDS STERLING FORTYEIGHT THOUSAND RPT £48,000 PER ANNUM. IT WAS ARGUED THAT THE U.K. POWER TO NEGOTIATE TRAFFIC RIGHTS IN RESPECT OF DEPENDENT TERRITORIES DERIVED FROM THE CHICAGO CONVENTION, WHICH ALSO IMPOSED ON THE METRO POLITIC POWER THE DUTY TO DEVELOP AND OPERATE THE AIRPORT.
4.
ALTHOUGH I DO NOT THINK IT WILL BE POSSIBLE TO PERSUADE THE HONG KONG GOVERNMENT TO PLACE THE WHOLE CONTRACT IN BRITISH HANDS ON THE BASIS OF E.C.G.D. COVER, IT WAS CLEAR TO ME THAT HONG KONG WOULD REGARD IT AS A HELPFUL CONTRIBUTION IF H.M.G. LET IT BE KNOWN IN ADVANCE THAT E.C.G.D. COVER WOULD BE AVAILABLE FOR ANY PART OF THE CONTRACT AWARDED TO BRITISH FIRMS. HOWEVER, I GATHER THIS MAY NOT BE ATTRACTIVE TO US SINCE IT MIGHT STIMULATE COUNTER OFFERS FROM OTHER COUNTRIES. NEVERTHELESS I HOPE IT WILL BE EXAMINED.
5.
THERE WAS A BRIEF REFERENCE TO THE APPLICATION OF CD @W ASSISTANCE FOR THE AIR TRAFFIC CONTROL ELEMENT AND IT IS CLEAR THAT THIS WOULD BE HELPFUL.
6. AFTER WE HAD GONE THROUGH ALL THE DIFFICULTIES I ASKED COWPERTHWAITE WHAT HE WOULD REGARD AS A FAIR CONTRIBUTION FROM H.M.G., GIVEN OUR PRESENT ECONOMIC CIRCUMSTANCES, AS A VISIBLE DEMONSTRATION OF OUR SELF-INEREST. HE REPLIED THAT WAIVING OUTSTANDING REPAYMENTS OF THE EXISTING LOAN FOR KAI TAK, TOTALLING NOT MORE THAN £1.6 MILLION RPT £1.6 MILLION, WOULD BE SO REGARDED. LORD SHEPHERD HAS ASKED THAT WE SHOULD GO ALL OUT FOR THIS AS OUR FIRST OBJECTIVE, TOGETHER WITH IF POSSIBLE A STATEMENT ON E.C.G.D. COVER AS IN PARAGRAPH 4 ABOVE AND APPROVAL OF THE C D @W APPLICATION.
7. THE HONG KONG GOVERNMENT WILL NEED TO TAKE A DECISION ON THE PROJECT IN SIX TO EIGHT WEEKS. IT HAS BEEN REPRESENTED TO ME THAT WITHOUT U.K. ASSISTANCE THE RESULT WAS NOT A FORE- GONE CONCLUSION- BUT I THINK THE HONG KONG GOVERNMENT WILL FIND IT VERY DIFFICULT NOT TO PROCEED.