1.

APPENDIX CONFIDENTIAL

The Government of Hong Kong applies for a grant of £235,200 to cover 50% of the cost of establishing (i) a surveillance radar for Air Traffic Control and (ii) an instrument approach system for Runway 13 of Kai Tak Airport.

2.

The radar coverage at Kai Tai Airport consists of a long range radar with ranges between 50 and 225 miles operated by the R. A. F. at Tai Mo Shan and a short-range radar with a range of 100 miles operated by the Civil Aviation Department. It is essential to establish an additional third set at Beacon Hill to cover breakdowns and annual over- hauls which last from three to four weeks. The third set will ensure that there is a full coverage within a 100-mile radius even if one set is out of action.

3.

The instrument approach system for Runway 13 is intended to replace the one already installed in the early 1950's. Since that time the speed of aircraft has increased considerably and air traffic has also expanded. The present approach system has a number of defects in operation as it was not built to handle the modern aircraft that are now using the airport. It is proposed to install a new approach system for Runway 13 at an early date to maintain good air safety standard.

4.

The equipment would be purchased by Cable and Wireless on the Hong Kong Government's behalf and paid for in one lump sum; capital redemption payment and the ownership of the equipment being formally vested in the Hong Kong Government. After installation, the equipment would be maintained by Cable and Wireless in accordance with the terms of the existing agreement between the Company and Hong Kong. Building and road works would be carried out by the Public Works Department.

CONFIDENTIAL

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