18
Mr Donald
родила
SECRET
REPLACEMENT AIRPORT FOR KAI TAK
A 13A1.
(12A)
HKK 182
RECEIVED IN REGISTRY NO. 51 30 SEP 1980
DESK OFFICER
INDEX
ль
PA
$1.10.
REGISTRY Action Taken,
"AW'l
The enclosure to Mr Orr's letter of 12 September describes the problem whether to site a new airport on Lantau or over the border in China. The Governor's letter of 11 September adds a gloss, with special reference to the future of Hong Kong. Together they favour the Lantau option.
2.
The arguments for and against the China solution are convincing. They are listed in paragraphs 11 to 12 of the background paper. The most convincing disadvantages are:
and
a) the vulnerability of total reliance on an airport in China
b) the loss of air traffic rights.
(We can confirm that Hong Kong's assumption on the Chicago Convention are correct).
3.
As the Governor points out, the idea of an airport in China nevertheless has its attractions because it could be a bargaining card with the Chinese. The trouble is that the cost (the disadvantages described) is so high. Only if the Chinese were ready to trade an airport for a new understanding on future British Administration would the idea be worth entertaining. Even then the air service and other headaches would remain.
4.
Without a major concession on the future the China solution would offer only illusory advantages in terms of 'confidence'. would be rather like the Guangdong Nuclear Project without the sale of electricity for foreign exchange. The Governor is certainly right that it would shift the centre of gravity of the Hong Kong complex northwards. Here, of course, would be one of the attractions for China. It would be in line with the evident Chinese policy of encouraging eventual 'symbiosis' of Hong Kong with southern Guangdong, though the development of industry etc around Shumchun and, perhaps, such projects as the China Resources-owned new town at Tin Shui Wai in the New Territories. We still need to calculate our attitude to such a process. We have generally welcomed economic development in Hong Kong and
'interdependence'. A Communist-dominated zone on both sides of the border might help over the New Territories leases problem but we would need to watch that it did not appear to investors as a dilution of the Hong Kong Government's authrty in a substantial area of the Colony. This is probably not a serious danger in present circumstances but an airport in China might change things.
5.
The background paper raises the question of discussions with the Chinese both on technical matters and on finance. The former will clearly be necessary. The latter are suggested in order to produce some kind of Chinese assurance which would encourage investment in the project. The Governor takes this point but stresses the need
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SECRET