CONFIDENTIAL
KAI TAK AIRPORT
Brief No 9
Background
1.
In March 1967 Hong Kong asked for a grant of £24 million towards
the cost of the extension of the runway at Kai Tak Airport. In July 1968 this application was replaced by one for a loan of £6 million to
cover the full cost of the extension. In 1969 the Hong Kong Government applied for a grant of about £4 million from Colonial Development and Welfare funds towards the cost of improvements to the air traffic
control system.
2.
Unfortunately, largely because of the buoyant state of the Hong Kong economy, it proved impossible to secure the agreement of other departments to assist Hong Kong in this way.
Traffic Rights
3. In February 1970 the Unofficial Members of the Executive Council prepared a memorandum on the question of the Defence Contribution.
In that memorandum they commented on Kai Tak as follows
"The value to Britain of the Hong Kong Airport should in particular
be allowed for, since Britain obtains substantial benefits from
the bilateral agreements in which HMG barters landing rights at Hong Kong for foreign aircraft for landing rights by British
aircraft in foreign countries. Without Hong Kong as bargaining
counter HMG could not maintain her worldwide air services on their
1
CONFIDENTIAL
/present