CONFIDENTIAL
Foreign and Commonwealth Office London SW1
(20)
J W D Margetson Esq
CABINET OFFICE
Telephone 01-
Your reference
Our reference
Date
29 November 1973
OFFICIAL WORKING GROUP ON HONG KONG
1.
I have two comments on the minutes of the meeting on
23 November.
Air Services
2. We said, and I think it was agreed, that although British aid for navigation equipment at Kai Tak airport might do something to soften the blow of refusing to grant air services to SAS, it would not be a substitute. The amount of aid concerned was not large and would not satisfactorily counter Hong Kong's argument that, having paid many millions of pounds for their own airport, they should control its use. Moreover the cost to us of aid or of reduced compensation from SAS might be similar. We should therefore go for the politically more profitable alternative the grant of air services. On this basis Miss Lackey agreed that we should not press the aid alternative and should not put it in the Cabinet paper. The last sentence of sub-paragraph (f) of your paper might therefore be redrafted: "If all else failed, a modest aid scheme for Kai Tak might do something to limit the political damage caused by refusing landing rights. But the cost might be similar to agreeing an SAS service, if necessary with reduced compensation. The latter was what
Hong Kong wanted.".
Mass Transit Scheme
3.
It was agreed, I think, that the DTI would keep the Frime Minister informed. They have done so. I enclose for your information copies of a reply from Mr Walker of 26 November to my Secretary of State's minute which you already have; of the Prime Minister's minute of 26 November to the Secretary of State for Trade and Industry, and of Mr Walker's reply of 28 November.
Сс
Miss M J Lackey, DTI
لسمانه
сору:
: Mr Yande
CONFIDENTIAL
A C Stuart
Hong Kong & Indian Ocean Dept.
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