CONFIDENTIAL
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funds employed. But we do not think this necessarily means that Hong Kong would not contemplate the earlier amortization (say seven or eight years after completion) of any loan finance we may be able to make available.
The bare bones of the project (paragraph 3 of the enclosure) are set out below:
4.
Million
£ 6.08
(i) Runway extension
(ii)
Extension of terminal apron parking area: taxiway modification
£ 1.65
(iii) Terminal building
expansion
£ 2.56
(iv) New air-cargo complex
£ 2.75
(v) Improvement of ATC system
£ 0.66
£13.70
With the help of the Aviation Division of the Board of Trade we have arrived at a rough rule of thumb assessment of £6.2 million as the British export content (in terms of "hardware") of the entire project: this is made up as
follows:
Percentage
British
content
Value
Million
Runway
40%
£ 2.4
Apron and taxiway
25%
£ 0.4
Terminal building
60%
£1.5
expansion
New air-cargo
50%
£ 1.4
complex
Improvement of
70%
£ 0.5
ATC system
£ 6.2
Overall average Eritish content 45%.
This estimate is based on experience of comparable projects elsewhere. There must be some reservations about this figure.
/We
CONFIDENTIAL
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