CONFIDENTIAL

MUA 10/393/1

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Mr. Stewart

I attach Sir Alec Douglas Homes letter and the Kai Tak files. I am afraid that Mr. Coe Bor is away today. However I spoke to Mr. Lello, his assistant who is almost certain that Mr. Coe does not favour the Treasury proposal. Mr. Coe has a copy of the Treasury letter and will no doubt let you have his views shortly.

2. In the view of this department the Treasury proposal is not a possibility. It has been decided by Ministers that the Dutch should only be granted traffic rights a Hong Kong in a civil aviation con- text and we do not regard this as a civil aviation context.

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3. However we would strongly support any move to pursuade the Treasury to co

the necessary funds. Our interest in maintaining good aviation relations with the Hong Kong Government and the enhancement of Hong Kong as a bargaining counter, through lengthening the runway, are both very much to our U.K. aviation advantage.

4.

In view of the proposed reply from the Prime Minister to the Netherlands Prime Minister about KLM landing rights at Hong Kong, Western Europe an Department should be consulted on any future devel- opments.

Mind.coomfield

(N.H.R.A. BROOMFIELD)

8 April 1969

CONFIDENTIAL

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