feeling in Hong Kong that the United Kingdom, which
derives substantial benefits from the control of
traffic rights at Kai Tak, has an obligation to
share in the cost of maintaining the airport at
modern international standards.
4. The Hong Kong Government has decided to go
ahead with the project without waiting for a reply
from us to their request for assistance.
It is
considered advisable to defer a decision on this
request for the present because:-
(a) although our balance of payments
has improved, no relaxation of
current restrictions on overseas
expenditure is possible;
(b) the aid programme would be the only
source of funds available, but to
help Hong Kong would be at the expense
of other territories whose needs are
much greater.
Hong Kong Department,
September
August, 1970.
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