5.
(b) The precedent could be dangerous.
We might be faced
with similar requests to ourselves when seeking traffic rights in less developed countries.
(c) We cannot see how our arrangement of Dutch finance (or for that matter of any continental finance, as mentioned by Coe) could be represented as a measure of recognition of our aviation interests in Kai Tak and
have the political impact in Hong Kong that we want - unless perhaps it were accompanied by some U.K. contribution to reduce interest charges and so provide the "favourable terms" sought by Hong Kong.
Our conclusion is that we should not attempt to pursue a deal with the Dutch. I shall be writing separately about other issues raised in Coe's letter and in your letter of 28 March.
I am pursuing a line of enquiry about which I hope to consult you urgently. We must continue to bear in mind the political
pressures that are fast building up.
6. I am sending copies of this letter to Coe (Board of Trade), Ricketts (O.D.M.), Downey (Treasury) and Turner (Bank of England).
Copies to:
Miss Brown (A.M.T.)
(W. S. Carter)
Mr. O'Brien (F.P.A.D.)