make Kai Tak less attractive to long range aircraft. But whereas the Board of Trade consider that these factors would seriously reduce trunk route operations through Hong Kong, the Hong Kong Government takes the view that the actual effect on traffic cannot be forogast, They anticipate that tourist traffic would be little affected although there would probably be some reduction; * most tourists visit Hong Kong in the course of Far East tours, and liong Kong is probably mufficient enough attraction in itself to ensure that they will continue to visit the Colony on regional routes using oldar types of aircraft. So far as freight is concerned, they believe that so long an air cargo is offering the aircraft will appear to transport it. The Colony's greater reliance on regional services would work to the advantage of the British airline based on Hong Kong (Cathay Pacific Airways).
Possibilities of üă. Assistance
16. The departments concerned (the Foreign and Commonwealth orrice, Board of Trade, Treasury and Ministry of Overseas Development) have examined the following possibilities :-
(1) Dae of funds already provided
(11)
Aid progr#RIDO
(111) Loan on the London market
(iv) Loan from the Commonwealth Development Corporation.
17. There is no possibility of being able to find savings of overseas expenditure of more than a mininal «moutn on the Board of Trade Votej
or for thất matter from the Foreign and Commonwealth Services vote if political grounds are held to justify a contribution. The Treasury cannot agree to any increase in the overall Votes of Departments for this purpose.
Any contribution would therefore have
to come out of funds already provided through the postponement or cancellation of other projects,
18. The £205 million aid programme alone sppears to offer the necessary flexibility, The Ministry of Overseas Development are not, however, prepared to provide capitel aid to Hong Kong in their present economic circumstances. They can see no justification for doing so
at the expense of other more needy countries in view of the buoyant
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