Registry No. MUA 10/393/1
SECURITY CLASSIFICATION
Top Secret.
Secret.
Confidential.
Restricted.
Unclassified.
PRIVACY MARKING
...In Confidence
DRAFT
LETTER
/5.8/5
To:-
R. H. J. Steel, Esq.,
Treasury,
Gt. George Street,
S.W. 1.
Type 1+7 copies серий
From
Telephone No. & Ext,
Department
24
You will have seen Coe's letter of 15th April in which he comments inter alia on your suggestion
that we might trade traffic rights for KLM in Hong
Kong in return for a Dutch financial contribution to the Kai Tak development project.
it is after all
2. We are not certain that the proposal would
enrage the Dutch, as Coe suggests:
not so very different from the proposition that was
seriously considered not so long ago of trading such
rights for a deal over Chieftain tanks. Having regard to the terms on which we have now rejected the
Dutch request following on last month's consideration of the question in the Defence & Oversea Policy Committee, it is our view that there is now little
political advantage to be gained by reopening the
matter with them nor do we think Ministers will be
inclined to authorise a fresh approach on the basis
you propose.
3. We note the Board of Trade's view that the
proposition would stand a very good chance of being
classed as discriminatory treatment in terms of the
Chicago convention.
4. For our part we see the following additional
objections :-
(a) A grant (if the Dutch could be persuaded
to make one) would give them a more or less
permanent stake in Kai Tak. A loan would tie us to the grant of rights at Hong Kong
at least for its term. In both cases so fixed a commitment might prove embarrassing to us in our future aviation dealings with
the Dutch.
(118281) Dd. 391599 1,500M 2/69 Hw,
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/ (b)
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