ATC 8/240/1

Flag A

5.

Mr Laird

Reference.

HKK 21/7

12

Kai Tak Airport

Requests for aid

Hong Kong have asked for the following grant aid for the airport extension:-

a) Despatch BL 2/926/65 of 10 March, 1967.

Extension and widening of the runway Extension of the Terminal apron Modification of taxi-ways

Application for half of cost, i.e.

HXX 21/12 (196

Flag B

£5,500,000

£2,250,000.

b)

Saving Despatch 197 of 27 February, 1969.

£ 332,900

137.500

£

470,000

£

235,200

HKCK 21/12/1468/4/

Flage (c)

Amy 8/210/115

Flag D

(Sir J. Couper

thwaite's

(1) Surveillance radar for traffic

control

(ii) Instrument approach system

Application for half of cost, i.e.

Saving Despatch 809 of 10 July, 1969.

(i) H.F. air navigation aid (ii) distance measuring equipment) Application for half of cost. i.e.

Total of applications is:-

a

b

£2,250,000 235,200 46,650

£2,531,850.

at}-

£

£ 46,650.

93,300

The original application for a grant of £24 million for extensions to the runway (paragraph 1a) above), was replaced by a loan application for the same amount in July, 1968*. The balance loan application for equipment 15 July @ (17)) (paragraph 1b) and c) above) were maintained.

letter of

HKKFlag E Flag-F

HK/L27/12 (17) 1128 1 Blas I AKKLW/1 (50)

Th

Kmineer

You may

heat

then papers fo

rpeting.

ER

14/2

3. The case for financial assistance for this project was put to ODM, Board of Trade, and the Treasury, but was turned down in all cases, since Hong Kong is considered to be too wealthy, compared with other aid applicants, to warrant assistance and there is no money available from other than aid sources.

4. The Secretary of State, during his visit to Hong Kong in April, was asked by members of the Executive Council whether the UK would help financially with the extension to Kai Tak. In reply he said that the UK had to watch very carefully any investment abroad and, though our economy had made progress, we were not yet able to relax. Nevertheless, he did not rule out a contribution and the matter would be looked at again next year.

S. While the requests for assistance for Kai Tak have been discussed with the Governor and Sir J. Cowperthwaite, no formal reply has yet been sent to the applications received from Hong Kong. Indeed, in his Budget speech on 25 February, Sir J. Cowperthwaite said, "..although we have not yet had a formal reply to our request of three years ago to Her Majesty's Government in London, we have /now..

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