Ed. (3746)
NOTHING TO BE WRITTEN IN THIS MARGIN
Registry No.
SECURITY CLASSIFICATION
Top Secret.
Secret.
Confidential.
Restricted. Unclassified.
PRIVACY MARKING
In Confidence
DRAFT
LETTER
To:-
The Right Hon.
Judith Hart, M.P., Ministry of Overseas
Development,
Eland House,
Stag Place, S.W.1.
Type 1 +
From
The Right Hon. The Lord
Shepherd
Telephone No. & Ext.
Department
Our Departments have been discussing for
some time the request of the Hong Kong Govern-
ment for loan assistance towards the extension
of Kai Tak International Airport. The money
asked for was £
2.
These discussions have however run into
a complete impasse. The Treasury are not ready
to agree that funds should be found outside the
aid ceiling. Your Department have been
unwilling to consider help because by their
normal criteria Hong Kong is not "aid worthy",
and, though H.M.G. makes considerable use of
Kai Tak as a bargaining counter in civil
aviation negotiations with foreign Governments,
the Board of Trade do not have at their disposal
funds for civil aviation purposes which could
go any significant way to meet Hong Kong's
request.
3. These attitudes are individually perfectly
defensible in the light of normal departmental
policy. But, taken together, they add up to a
conclusion that leaves me most unhappy, not only
from the point of view of Hong Kong's interest
but of our own interests there. There is a
background to this. We have had in recent
/years