CONFIDENTIAL

13. UNLESS THE POLITICAL ARGUMENTS BECOME MUCH MORE CONVINCING,

THE MINIMUM HONG KONG WOULD REQUIRE IN ANY AGREEMENT WWITH CHINA FOR A NEW AIRPORT TO BE BUILT THERE FOR USE BY HONG KONG

WOULD BE

(A) NO LIMITATIONS TO ACCESS:

(B) HMG TO ENJOY NO LESS IN AIR TRAFFIC RIGHTS THAN IF THE

AIRPORT WERE IN HONG KONG:

(C) THE AIPORT SHOULD HAVE THE CHARACTERISTICS SUMMARISED IN

PARAGRAPH 4 ABOVE:

(D) THE AGREEMENT TO BE CONCLUDED BY 1983 AND THE AIRPORT

TO BE READY BY 1998.

CONCLUSION

14. AS THE POSSIBILITY OF AN OUTCOME SATISFYING THE REQUIREMENTS SUMMARISED IN THE PRECEDING PARAGRAPH IS REMOTE, IT IS PROPOSED TO CONTINUE WITH THE PLANNING FOR THE CONSTRUCTION OF HONG KONG'S REPLACEMENT AIRPORT AT CHEK LAP KOK. BUT AS A SOUND POLITICAL GESTURE (AND AS SOME UNDERSTANDING WITH CHINA ABOUT THE FUTURE WOULD BE NECESSARY TO RAISE THE FINANCE FOR IT) AT SOME POINT

WE MUST RAISE VARIOUS PRACTICAL ISSUES INVOLVED IN BUILDING

A REPLACEMENT AIRPORT AT CHEK LAP KOK WITH THE CHINESE. WE

WOULD ALSO PUT OUT TENTATIVE FEELERS TO SEE WHETHER CHINA MIGHT BE INTERESTED IN PARTICIPATING IN THE FINANCING OF THE PROJECT. MENWHILE, NO APPROACH SHOULD BE MADE TO THE CHINESE TO LOCATE A JOINT VENTURE AIRPORT IN CHINA UNLESS A STRONG BALANCE

OF ADVANTAGE IN FAVOUR OF SO DOING EMERGES AS A RESULT OF CONSIDERATION OF THE PROJECT IN THE FCO, OR DISCUSSION WITH

THE CHINESE.

MACLEHOSE

LIMITED

HK v GD

FED

MAED

SIR E YOUDE

MR DONALD HISS BROWN

CONFIDENTIAL

5.

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