Mr. Gaminara
CONFIDENTIAL
Reference..
with (14
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ATC 8/240/18 AMI $/240/1 (11)
AMT & 2001 (32)
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Aid for Kai Tak Airport, Hong Kong
Hong Kong telegram 594 asks for a decision on their application for aid for Kai Tak airport runway extension.
2.
The situation regarding this aid application is summarized at (13) below. The Governor's original application for a grant of £2 million was changed to one for a loan by Sir J. Cowperthwaite's private letter of 15.7.68 followed by Hong Kong telegram No.
2086 of 15 October, 1968 confirming that the loan amount was 88.5 million (£6.084 million).
3. Although no formal reply has yet been given to Hong Kong, the then Foreign Secretary told members of the Executive and Legislative Councils in Hong Kong on 19 April, 1970 that, although H.M.G. could not yet relax the present policy regarding overseas investment, he did not rule out a contribution "and the matter would be looked at again next year".
4. In July 1970 the possibility of trying to get this application agreed to was looked at again but it was decided that the present financial situation would make any prospect of success most unlikely and it was decided to defer consideration once more.
5.
The Governor's demand for a decision now can only result in a negative reply. If, as the result, the Hong Kong Government decides to reduce or defer the scheme for extension of the runway, we nothing to help or to stop them doing so. It is likely that the Governor is bluffing in threatening to reduce or defer the scheme. The situation in regard to financial assistance from H.M.G. being what it is, I recommend that the Governor be told that we cannot help at present.
4. Draft telegram to Hong Kong to issue.
Ammeas
(G. F. Kinnear)
8 September,1970
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Mr.Wilford
2.
Please see Hong Kong telegram No.494 attached.
Since Mr. Laird is now in Hong Kong and is in a position to let the Governor know what has happened on this particular issue, I can only conclude that the Governor has deliberately sent the telegram in order to force the issue. He told us as long ago as 2 July about the increase to £11 million in the estimated cost of the extension to the runway so it cannot have been a sudden development.
CONFIDENTIAL
13.