there would be serious technical problems related to runway configuration and the siting of instrumental landing aids;

surface access would be particularly difficult, bearing in mind that the East Lamma Channel is a shipping lane to the container terminal at Kwai Chung.

The Consultants estimated that the cost of a replacement airport at Chek Lap Kok would be in the region of $3, 614 million at January 1974 prices, with the planning and construction to be spread over ten years. This figure included the cost of road access from the north-east tip of Lantau to the airport, 20% of the construction costs of the bridges from Lantau to Ma Wan Island and from Ma Wan Island to Tsing Yi and 20% of the cost of the eastern trunk roads, and an overall 13% engineering and administration charge.

The case for a replacement airport

8

The results of the Consultants' studies were presented to the Aviation Advisory Board. Between May 1975 and August 1977 the Board considered various aspects of the problem, including:

(a)

the more recent forecasts of air transport demands prepared by aircraft manufacturers, airlines and tourist associations (referred to in paragraph 5 above);

(b)

the role that the air transport system played in Hong Kong's trading, financial and tourism sectors;

(c)

the economic implications of not building a new airport;

(d)

the problem of financing;

(e)

the value of the land at Kai Tak should it become

available for normal urban development; and

(f)

9

the traffic implications in the West Kowloon Corridor of building an airport at Chek Lap Kok and the closing of Kai Tak airport.

As regards paragraph 8(b) and (c) the Board sought advice on the economic aspects and was informed:

CONFIDENTIAL #

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