Mr. Kinnear
Would you please make to Mr. Pakenham the point mentioned in para.l of my minute to you of 22 October.
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2. As regards Kai Tak and KLM, the formula which Mr. Royle proposed to use (after consultation with the Chancellor) was to the effect that "we are looking at this in the FCO but we cannot hold out high hopes.' fact, Mr. Royle had no occasion to use this formula în public or, I understand, with unofficial members of the Councils, although he spoke frankly with the Governor and officials. The suggestion that we should make a loan for the extension of Kai Tak is now dead, if for no other reason, because the contract for the extension has been awarded to the Japanese. We shall have to send a formal reply to Hong Kong in due course but not until, I hope, we have been able to make some headway with the proposal that we should provide equipment for technical schools.
3. I very much hope that the Hong Kong Association will not raise Kai Tak with Mr. Rippon, but we must make certain that Mr. Pakenham has the gist of this minute today.
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E. 0. Laird
26 October, 1970
Returned to Pakenham with regent mention fossible 45 restrictions on un borli from H.K.
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84/26/20