NOTHING TO BE WRITTEN IN THIS MARGIN

HKK 22/5

Defensive

CONFIDENTIAL

Brief No

Secretary of State's Visit to Hong Kong

February, 1972

Fackground

Loon for Kai Tak Airport

htta

~1969

the king Kay. Govt. applied तू Jh a great 12 ani 714

millin from

Colmil

Developer and

as Welfare

Lowend

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Jundr

Mt. Comp 1

to the

whi

سام نسا

فيلا بنا

an

Colin syd

In March 1967 Hong Kong asked for grant

Lowards the cost f

~the summing and botalling £24 million for the extension of Kai

<

Tak Airport, runway. In July 1968 this application

was replaced by one for a loan of £6 million to

of the extension,

cover the full cost as it was then estimated. (In

^ September 1970, the Governor informed us that the

cost had increased to £11 million),

The original ease for financial assistance

was refused by CDM, the Board of Trade and the de

Treasury on the grounds that, as compared with

other applicants, Hong Kong was too wealthy to

warrant assistenee. No formal reply was givén

to Hong Kong but, during a visit there in April

1970, the then Secretary of State said that, in

view of current economic difficulties, the UK had

to watch very carefully any overseas investment.

He did not, however, rule out the possibility

of a contribution and promised the matter would

be reviewed in 1971% In September 1970, the

Governor asked for a definite answer but, during

his visit to Hong Kong in October 1970, Mr Royle

could go po further than to say that the question

was being examined. (The Governor had previously

been told that it was only in the FCO that there

had been any support for his case).

CONFIDENTIAL

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