-5-
Public Order Ordinance, bus fare increases, personal tax allowances
and trade union disputes. These are essentially matters for Hong
Kong Government. No reason for HMG to intervene.
KAI TAK AIRPORT
saturated.
20. Kai Tak airport will need to be replaced by 1990 when it will be
Present preferred site straddles Che k Lap Kok Island,
north of Lantao Island. No firm decision has yet been taken but a
final decision to proceed should be taken by the end of 1982. US
firm (with whom UK Civil Aviation Authority is associated) recently
won contract for master planning study.
21.
Certain Hong Kong businessmen have suggested to Chinese
authority that new airport should be built just north of the border
with China. The Hong Kong Government was not consulted about these
approaches and opposes the idea, although a few members of
Executive Council favour it. It would raise complex political and
legal problems, particularly over air services rights. Chinese will,
however, have to be brought in eventually, even on Chek Lap Kok
proposal, because it is unlikely that finance for project could be
raised without some assurance on the future of Hong Kong beyond 1997.
There will also be a need to discuss technical matters with Chinese.
CASTLE PEAK 'B' POWER STATION
22. (See Brief No 14) UK group led by GEC and Babcock have won a
provisional order from China Light and Power and Esso Eastern for a
second coal-fired power station at Castle Peak (Tap Shek Kok) (Value approximately £550 million). GEC/Babcock already building smaller
Final approval of contract should be given between 23
If so, way will be clear for Secretary of State to
'A' station.
and 30 March.
announce deal when he visits Castle Peak site (the Press will be
included in this visit).
/23.