Registry No.
SECURITY CLASSIFICATION
Top Secret.
Secret.
Confidential.
Restricted.
Unclassified.
PRIVACY MARKING
...In Confidence
CONFIDENTIAL
DRAFT letter
Type 1 +
To:-
For
Dick Taverne,/.C., M.P.,
Treasury
From
Lord Shepherd
Telephone No. & Ext.
Department
Copies to:
The Rt. Hon.
Govenwy Ropperts
(118281) Dd. 391599 1,500M 2/69 Hw.
NOTHING TO BE WRITTEN IN THIS MARGIN
K.P.
Board of Trade.
Rt. Hon. Judith
Hart, M.P.
Officials of our departments have been considering
for nearly two years applications by the Government of
Hong Kong for assistance in financing improvements to
Kai Tak Airport; the improvements are required both
to deal with the fast increasing traffic and to meet
the requirements of the new generation of "jumbo" and
supersonic aircraft. Towards this project (costing an estimated £13.7 million) Hong Kong asked initially for a
loan of about £6 million on favourable terms to finance
the major feature of the project, the runway extension;
and additionally at a later date for a grant from C.D.
and W. funds of about £4 million towards improvement of
the air traffic control system.
?
1
2. While acknowledging in varying degrees the
considerable British civil aviation interests involved
in this project, officials have been unable to identify
or agree upon a source of government funds which might
be made available for this purpose. Your officials,
pointing to the need in our present economic circumstances
to maintain strict control of overseas expenditure,
have insisted that any assistance must be found without
The
any increase in the overall votes of Departments.
Board of Trade maintain that, in view of the strict
financial limits within which they now are required to
operate, funds could only be found from their votes at
the expense of some other civil aviation project or
/projects
CONFIDENTIAL