Reference........HKK 21/12...
Mr.
Carter
Before he went to Hong Kong Mr. Moreton gave instructions that we should proceed with the CD & W application at (1). Now the same application is an element in the package solution set out in Christian telegram No. 5 to which the Minister while in Hong Kong has given his blessing.
2. We shall need strong Ministerial support if this application is to stand any chance of success. For one thing this request for assistance with the improve- ment of the telecommunications capability at Kai Tak I was an element in the main Kai Tak loan request which
ODM turned down at (3) on K 21/11. In so far as it reappears as a request for CD & W assistance it is still a request to ODM and the more likely to be refused because it is for a grant and not for a loan. Indeed in their comments on Mr. Fortescue's P.Q. about facilities at airports in British overseas territories ODM have reiterated that they have no intention of assisting Hong Kong and have not even got the matter under consideration.
3. But even this is not the whole of the unpromis- ing background against which we will be approaching ODM. At (21) on K 5/13 the Financial Secretary repeats his view that this is not a request for aid. He obviously does not care where the money comes from but if it is to be CD & W it must be aid. Even if we took the view which Hong Kong takes explained at (25) on K 21/11 that it was particularly HMG's responsibi- lity to "provide radio services
and other air navigation facilities" that would make it the respon- sibility of the Board of Trade and we know there is nothing to be hoped for from them.
4.
I have drafted to ODM. Almost the only argument we can use is that of Ministerial support.
Copies to:
HKK 21/11
HKK 5/13
V
(H. H. Stewart) 10 June, 1969
M