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Our actions are seen as showing a lack of concern for Hong Kong's
interests and for her special problems;
as indicating an
indifference to the special ties and relationship which should
subsist between a Colony and the responsible power. To take the
example of devaluation, much of the bitterness arose not because of
the loss in value of Hong Kong's sterling assets, as from the
Colony being left to fend for itself like any other independent
country holding sterling; our subsequent willingness to make
the exceptional "Roosa bond" arrangements with Hong Kong
subsequently subsumed in the comprehensive Sterling Area Guarantee arrangements) helped to take some of the bad feeling out of this
issue.
15. Assistance for the development of Kai Tak airport is
mentioned in paragraph 5 above as one of the ways in which we could
demonstrate confidencein Hong Kong. The Hong Kong Government has
asked us for assistance in financing a £13 million project for
developing this airport, which is second only to Heathrow in its
importance to British aviation interests because of the value of
traffic rights there. The request is for a loan of about £6 million
on favourable terms (i.e. over 15 years at interest below the
market rate); this sum would finance the extension of the runway
so that it can take the new generation of jumbo and supersonic
aircraft. They have also asked for a grant of about £250,000
from aid funds towards the cost of replacing the aeronautical
communications system.
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/ 16.