V
CONFIDENTIAL
See 2D on page I.
for Brief on
BRIEF NO.
Support for Hong Kongs Export Cedit
Ensurance Corporation
VISIT OF MINISTER OF STATE FOR COMMONWEALTH AFFAIRS TO HONG KONG
OCTOBER 1967
Gestures and Assistance
8
The Minister will recall that in the Hong Kong Ministerial Committee on the 22nd September a paper was taken setting out a number of ways in which we might show goodtrill and support for Hong Kong. In addition, we discussed with the Governor before his return to Hong Kong a number of other
ideas and suggestions.
2.
The most important of these concerned the proposed Cross-Harbour Tunnel. This is the subject of a separato and self-contained brief (Annex A). Notes on a selection of other gestures or projects are set out below. Sone of those originally raised do not receive mention here: this means we are not able
to report any progress.
A.
Development of Kai Tak Airport
Extensions to the runway, aprons, terminal buildings, etc., to Kai Tak Airport must soon be made if the Airport is to be able to handle the greatly increasing traffic and is to accommodate the new generation of large and supersonic aircraft. A tentative plan involving expendituro of about £10 million has been prepared. Our control of cabotage rights at Hong Kong are of the greatest value to B.0.A.C. and Hong Kong is one of our most important bargaining counters in negotiations for air traffic rights throughout the world. Any diminution of its importance would have serious effects on British aviation and B.O.A.C. in particular. For these reasons Hong Kong has proposed that H.N.G. might share in the development of the airport; on present tentative proposals that share would be a grant of some £3.25 million towards the total cost. Failing some assistance on these lines, it would be oxtromely difficult for Hong Kong to meet the total cost of this project without unacceptable reductions on other projects of greater importance to the community as a whole c.g. in the field of social services. The presentation of this proposal to the Board of Trade is in its final stages; wo are discussing with Hong Kong the section on financial considerations.
B.
Joint Education Projects: Technical Training
In the present financial climate we see no hope of obtaining funds for such a project from other than existing sources as indicated in paragraph 4 of Briof No.5 (Technical Education). Wo aro looking into the availability of
CONFIDENTIAL
/C.D. & W.
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