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terms of gross annual revenue, are estimated at
£20 million).
5. It so happens that these interests of ours are
no longer at grave risk. The Hong Kong Govern-
ment have decided to go ahead with their plans,
including the extension to the runway. But I
suggest that we ought to consider what our loss
might have been if it had been decided, in the
absence of assistance from us, not to proceed with
the improvements as planned and in particular with
the runway extension.
6. The Hong Kong Government might well have
decided not to extend the runway. They do not
accept that an extension is essential to the
Colony's own interests, maintaining that the new
generation of aircraft could use Kai Tak as it is
(subject to weight penalties in certain conditions
and on certain longer routes). They accept that
these restrictions, together with the reduced
safety factor for such aircraft, would tend to make
Kai Tak less attractive to long-range aircraft;
but they consider that their tourist traffic would
be little affected, using older types of aircraft,
and that so long as air cargo is offering the air-
craft would appear to transport it. On the other
hand without the runway extension our interests
would suffer heavily in that:-
(a) the scope for increased use of the airport
by BOAC would be seriously limited;
(b) the airport would become progressively of
less value in air services negotiations;
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/(c)
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