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CONFIDENTIAL
H
9
Brief No
White
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KAI TAK AIRPORT-
BACKGROUND
STATE'S VISIT TO
FEBRUARY 19720
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 £1 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 ExecutiveCouncil 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.
CONFIDENTIAL