Dd. 32855 Ed (4200)

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This sentence goes but for as

suouls, Sthink, be omitted.

The growth of such feelings, too, hardly helps

our exporters to the Hong Kong market, nor do they

form the best background against which to nego-

tiate an increased defence contribution from the

Colony towards the costs of our garrison there.

(We are just about to embark on what are likely to

be extremely difficult negotiations on this point).

10. In failing to respond to Hong Kong's

request over Kai Tak we are in a most vulnerable

position because of our own strong interests in

the airfield and the use we have made of it in

our civil aviation negotiations. It was built

with the Hong Kong taxpayers' money; we have

used our authority over Hong Kong to deny entry

to the airport to foreign airlines, whom the

Hong Kong taxpger would have been glad to see

there in the interests of the Colony and its

economy.

У

All this we have done in the interests

of our own airlines. But in doing so we are

sailing desperately near the wind in regard to

our obligations under the U.N. charter to

recognise as paramount theinterests of the

peoples of our dependent territories of which, of

course, Hong Kong is by far the largest still

remaining. A loan from U.K. funds to finance the

expansion of the airport would go some way at

least to make our position more respectable and

help us to retain it in the future. therwios

I doubt very much whether we ought to attempt to

continue to suetair

And we can be sure that

suetain it.7

Hong Kong will mount constant pressure to be

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CONFIDENTIAL

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