CONFIDENTIAL
2.
penditure, the project is custom-built for a loan on reasonable terms.
Secondly, the traffic rights of the Colony are in your hands, and the exercise of these rights is worth a considerable sum to Her Majesty's Government. The more recent decisions have not, I agree, been hurtful to us, but Hong Kong believes, and you will not disabuse the public of this idea, that the United Kingdom is getting a cash advantage from the operation of Kai Tak and therefore should play its part in financing any necessary expansion. Personally I am inclined to hold this view myself, while, also personally, I would far prefer the handing over to us of control of the traffic rights rather than a contribution by way of a loan. But what I think is, in this context, not important. The important fact is the belief firmly held by the people of the Colony not you will agree altogether unreasonably.
Thirdly, the prosperity of Hong Kong is deeply rooted in confidence in the British connection, and it is complementarily important that the confidence of Her Majesty's Government in the future of Hong Kong should from time to time be demonstrated. Involvement in a work of permanent importance such as the extension of the runway would be an admirable, and indeed profitable, opportunity for a gesture of the kind I have indicated.
Leslie Monson had been somewhat puzzled by David Trench's reference in his recent address to the Legislative Council to the abandonment of hope of United Kingdom assistance. But the reference was very necessary.
A widespread belief had taken root all over Hong Kong that the expansion of the airport was being delayed by a dilatory attitude on the part of Her Majesty's Government. This is of course untrue indeed the final engineering studies and consideration of contract documents are not yet complete, and the formal decision to go ahead with the project at all has not yet been taken and cannot be taken
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