TNAG-0208-FCO40-244-Discussions-about-extension-to-Kai-Tak-airport-1969 — Page 146

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THE COLONIAL FORMULA

1.

The Colonial formula adopted at the Colonial Civil Aviation Conference 1947 read,

2.

(1) Colonial administration should be primarily responsible for the construction, maintenance and operation of civil aviation works and services in their territory.

(11) The Colonial Government should normally be responsible for the constructional work involved.

(iii)The Colonial administrations share of the cost, both capital and recurrent, of civil aviation works should be assessed in the light of the following factors:

(a) The cost of the civil aviation facilities which

would have been maintained had there been no trunk sɔrvice or Royal Air Force Requirement:

(b) The estimated value to the Colony of the presence

of the trunk staging post;

(iv) In order to arrive at a financial arrangement under which the necessary work can be put in hand a provisional assessment of the division of costs both capital and recurrent as between H.M.G. and the Colonial administration concerned should be made in the first instance for a fixed period and reviewed subsequently in the light of developments. The provisional assessment should cover all the costs incurred in any Colonial territory, with separate assessments where necessary for capital and recurrent expenditure.

The following gloss was added at the Conference itself:

"In assessing these liabilities, account would have to be taken not only of the requirements for local air services and the benefits likely to accrue to the Colonies concerned from the trunk service, including benefits arising from disbursements in the Colony in connection with the trunk service and the creation of local employment. It would also be necessary to takes into account the benefits to the United Kingdom and its airline operators of the provision of staging facilities in the Colonies".

TCA 4535G