Mr. Godden
CONFIDENTIAL
Financial Assistance in the Development
of Kai Tak Airport
Sir Leslie Monson has shown me a copy of Mr. Carter's
submission on this subject. I realise that we need to be able
to show the Hong Kong authorities that we have left no stone
unturned and, if a letter to the Treasury is necessary for this
purpose, I would not disagree with the draft submitted by Mr.
Carter. But I think it is most unlikely to produce any helpful
results and there is some risk of it leading to responsibility for
providing financial subsistence for Hong Kong being fastened firmly
This could not be met from our present Vote nor
on the F.C.O.
from the provision within our PESC category.
I would seriously
doubt whether the Treasury would consider providing new money.
As paragraph 3 of the draft makes clear, the economic argument for
providing assistance to Hong Kong is poor, particularly as the
Hong Kong Government have decided to go ahead with their plans. For
this reason also I think that ODM are on strong grounds in refusing
to provide capital aid for Hong Kong from their Vote and I have
considerable doubts whether we would be justified in joining with
other Departments in trying to persuade ODM to bend its rules (last
sentence of Mr. Carter's submission).
Copies to:
Sir L. Monson
Mr. Wilford
Mr. Gallagher
Mr. Carter Mr. Wade Gery
Jumt
(W. I. Combs )
26 March, 1970/ I agree
CONFIDENTIAL