Our reference:
2F45/54/01D
Your reference: HKK21/11
Dear Carter,
R&R
Treasury Chambers
Great George Street, London S.W.1 Telephone: Whitehall 1234, ext. 288
9th July, 1969.
47
11. Stewart
We should perhaps
Connder whether it is worth pursuing This correspondence.
of
*
we do so, it will Ś think have to be
Mi
some depth. Lox
"
Thank you for your letter of 7th July about Hong Kong Airport. I should not really be replying to your letter since my interest in this subject is entirely limited to the potential export credit which may enter into the case. However, since you have referred me to the Board of Trade memorandum I cannot refrain from commenting that the advantages which are described in that memorandum are advantages which accrue to B.O.A.C. in the first place and to the United Kingdom balance of payments in the second place. They are not advantages which in present circumstances could accrue to Hong Kong unless it were to run a national airline which I would assume at the moment to be improbable. From the Hong Kong point of view it really matters very little whether the traffic rights are used by B.O.A.C., or whether alternative arrangements have been made which allowed other users greater access to the Airport provided the result was that the same number of passengers used the International Airport. I assume that Hong Kong itself could not easily use air traffic rights for any process of bargaining other than in return for other air traffic rights, and certainly this is the kind of pattern which the Board of Trade have been making efforts to maintain so far as their own activities are concerned.
If I am right about this it follows that the interest of Hong Kong in this Airport is in its existence as a prestige symbol, and as a means of earning revenue, and as a means of communication. All these advantages accrue to it quite independently of any question of air traffic rights or the independent interest which B.0.A.C. derive from our special position in Hong Kong. It does therefore seem to me rather difficult to argue that the Hong Kong interest in the Airport requires very special subventions from the United Kingdom. All I will say at the moment is that it is for the others concerned with direct aid to consider this point on its merits, but that so far as making any special concessions on export credit is concerned I do not admit that there is a case
Copies go to Smith (Board of Trade), Ricketts (0.D.M.), Gill (E.C.G.D.), and Steel (Treasury).
W.S. Carter, Esq.,
Hong Kong Department,
Yours sincerely,
(C.C. Lucas)
RECEIVED IN
R. GETRY No.51 11 JUL 1969
Foreign & Commonwealth Office,
S.W.1.
LAST
REF.
(44
NEXT
REF.
HKK21/11
No comments yet.
Private notes are available after approval.