security that the ability to move troops, key individuals (including, for example, those inimical to the Chinese) and essential supplies remains under Hong Kong's control. Whatever agreement was made with the Chinese, this degree of control would be reduced significantly if the airport were in Chinese territory. Thus, on security grounds alone it would be necessary to retain Kai Tak as an alternative to the new airport in China.
Air traffic rights.
At present some 30 airlines operate scheduled services into and out of Kai Tak, by virtue of a bilateral air services agreement between HMC and the governments of the foreign countries concerned (or of inter-airline agreements). Traffic rights in civil aviation terms are derived from sovereign territorial rights. The ability to trade landing rights at Kai Tak for rights elsewhere is of great value both to UK-based airlines and to Cathay Pacific Airways. It is theoretically possible that agreement could be reached with China that air traffic rights at the new airport should remain in the hands of the UK and Hong Kong, at least to the extent that they involved essentially Hong Kong traffic. But in practice such agreement is unlikely; and to proportion the rights between Hong Kong and China would be a nightmare.
Cost. The need to retain an airport at Kai Tak would mean foregoing the very substantial revenue (possibly HK$25,600 million at current prices) from the sale of land there and the very substantial environmental benefits of removing noise and the risk of accidents from the crowded urban areas. Although quantifying the sum involved would require a detailed study, it is evident that this fact alone makes the net cost of an airport in China much greater than would appear at first sight. Further- more, there are no means of telling what terms the Chinese would stipulate for the construction and management of an airport situated in their territory. As their interest would probably be to maximise their financial gain from such a project, Hong Kong could hardly expect concessionary terms. Furthermore the continuing use of
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