7.
apparent lack of physical capacity to sustain an increased prog:amme of capital works has ngent that the 1969/70 budget estim tas a surplus of over £10m. compared with a deficit of £2m. in the earlier
corecasts. 7
The Hong Kong Dovernment has turned to HKG to provide financial facilities because of the V.K's, undoubted interest in maintaining Kai Tak sa e first class airport. The C.K. intorest derives from the profitable rights enjoyed by BOAC at Kai Tak and from the very considerable valw of traffic rights at Hong Kong in negotiati. traffic rights for British airlines alsewhere in the world (see paragraphs 9-13 below).
8.
In 1950 This interest bus bean recognised by IIM in the past, £75,000 was contributed to runway work und a further £5,000 was provided from Colonial Developwant and Welfare funds for airport telecommunications. In 1939 HMG agreed to contribute to the cost of the existing runway, taxiway and tominal building (£7.3 million) by maning an interest free loan of 23 million repayable over fifteen years. Half of this loan has so far been repaid (repayment commenced in 1961).
U.K. CIVIL AVÁ,táv interest
9. Because Hong Kong is United Kingdom territory, HMG is responsible for Hong Kong civil aviation matters in the International Civil Aviation Organisation (ICAO). This means that there is a responsibility for ensuring that Kai Tek is maintained at a standard Capable of meeting reasonable requirements in accordance with ICAO Regional Plans.
10. Next to London, Hong Kong is at present the moat valuable international traffic point remaining within United Kingdom responsibility. It is valuable firat becsuse of the revenue derived by BOAC from services to and from Hong Kong, and second through the important concessions in traffic rights secured for British airlines in exchange for traffic rights at Hong Kong granted to airlines of other countries in air services negotiations.
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