TNAG-0208-FCO40-244-Discussions-about-extension-to-Kai-Tak-airport-1969 — Page 40

W(B)L 51-74 33

NOTHING TO BE WRITTEN IN THIS MARGIN

Registry No.

SECURITY CLASSIFICATION

Top Secret.

Secret.

Confidential.

Restricted.

Unclassified.

PRIVACY MARKING

In Confidence

DRAFT

LETTER

To:-

R. H. J. Steel, Esq.,

H.M. Treasury

Type 1 +

From

Telephone No. & Ext.

Department

Copies to:

Mr. W.J. Coe,

B. of T.

Mr. C.C. Lucas,

Treasury

Mr. D.C. Smith,

B. of T.

Mr. J. Gill,

ECGD

Mr. C.C. Ricketts,

Mr.

ODM.

O'Brien (FPAD)

Miss Brown (AMTD)

I do not think

that this is

disputed in

principle acompt Departinents

ŵ Load

•

John Moreton has reported on the talks

which Lord Shepherd and he had with the Governor

and Sir J. Cowperthwaite about financial

assistance for the development of Kai Tak

airport.

2.

In answer to questions about U.K.

assistance for this project Lord Shepherd referred at both his opening and closing press conferences to the difficulties in the way of

direct financial assistance from the U.K. given

the present economic restrictions in Britain;

to the pressure on aid funds from more deserving countries; and to Hong Kong's

Hower buoyant revenue. Thig li was received in

slu

Hong Kong without any strong adverse public

reaction. But I do not want you to think

that because public reaction in Hong Kong was

relatively mid we can regard ourselves as off

the hook in this matter. It must be remembered

that in Government circles, particularly among

unofficial members of both Councils, there is La very strong feeling that the considerable benefits we derive from control of traffic

rights at Kai Tak should be matched by some

sharing of responsibility on our part for keeping the airport up to full international standards. If we do not acknowledge and assume some measure of responsibility, our relations with Hong Kong on the question of the disposal of traffic rights will grow steadily more

difficult.

3.

In discussions about a possible ECGD-

backed facility on the lines set out in our correspondence with ECGD (of which you have copies), Cowperthwaite ruled out the

possibility of steering the whole contract into

British hands on the grounds that :-

/ (a) ..

...