TNAG-0019-FCO40-55-Brief-for-Secretary-of-State-s-discussions-with-Hong-Kong-s--1968 — Page 27

CONFIDENTIAL

Background

9. At the end of March the Secretary of State wrote to the Defence Secretary setting out the arguments for having a permanent fighter presence in Hong Kong when air cover can no longer be maintained from Singapore, and asking that very careful consideration should be given to this in the study being made of the military forces required in Hong Kong after 1971. In his reply the Defence Secretary, while not accepting all the arguments, did agree to take account of the Secretary of State's views. A draft paper now being prepared for 0.P.D. envisages that after 1971 the following

forces may be required in Hong Kong :

(a)

(b)

Seven and two thirds major Army units.

Two frigates and five coastal minesweepers.

(c) Six Whirlwind helicopters and five Hunter aircraft.

The draft paper is still under discussion at official level.

IV.

Gestures of Assistance

Speaking Notes

www

10. Referring to the Governor's plea in September last year that

H.M.G. should in some tangible way indicate its interest in and

concern for the Colony, the Secretary of State might say that he

now understands that the possibilities have narrowed down to two

projects assistance for the development of Kai Tak Airport and towards the establishment of a Polytechnic in Hong Kong. In the present state of financial stringency it would be rash to say that

sums for one or other or both of these projects will be forthcoming, or even to indicate from what source they might be found; nevertheless he and his officials will do their best to press for a

measure of assistance to both projects.

Background

11. The Hong Kong Government have put in detailed proposals costing about £10 million for the development of Kai Tak Airport and have

suggested that H.M.G. might contribute about £3.9 million. The

extensions are largely required to make it possible for Kai Tak to

take the supersonic and Jumbo jet aircraft of the 1970s.

The case for some assistance from H.M.G. rests substantially on the value of

the traffic rights enjoyed by BOAC at Hong Kong and the value of traffic rights generally in Hong Kong in negotiations for traffic rights for British airlines elsewhere in the world. Hong Kong's proposals are being studied by the Board of Trade and we hope to

give the Governor some indication of their reactions before he leaves this country.

CONFIDE

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