TNAG-0209-FCO40-245-Application-for-expansion-of-aeronautical-telecommunications-1969 — Page 56

To HiK.

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~TELOR DON (36

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Mr. Carter

ARCHIV –

2- APR 1969ence MUA 10/3931

MUA 10/393/1

Sir John Cowperthwaite has answered the two telegrams we sent after the meeting with the Treasury unhelpfully. In effect, he resists the request that he evaluates the benefits to Hong Kong of the proposed Kai Tak improvements on the grounds:

2.

(1) that it would be time-consuming and inconclusive to make a thorough and realistic appraisal of this sort, and

(2) because it would be to the prejudice of Hong Kong's argument that she stands to gain little if anything from the project, while the UK will be the main beneficiary.

I have not sent the Treasury a copy of telegram no. 227 although you will see that FPAD have a copy. We might do so, and tell Mr. Steel that this was the sort of answer we anticipated and that he mus deal with our request on the basis of the facts already at his disposal. But I do not think we can possibly do this. I would expect the application to run into the ground if Hong Kong's refusal to co- operate were accepted and what could we look for from the Board of Trade who, however reluctantly, ought to be at work on providing more detailed figures for their contribution?

3.

I think we ought to write to Sir John Cowperthwaite and I have drafted for your considera- tion. I suggest we take the opportunity to go over quite a lot of the Kai Tak ground because we owe it to Sir John Cowperthwaite to say something about the progress of the application generally. I also think that one or two home truths may be overdue and I have tried to introduce these in a manner which will, I hope, be acceptable. I have also tried to get out of the way for the time being the embarrassing application for CD & W funds, and if you agree, having sent the letter, we could tell AM & T and FPAD (but not for the moment ODM) that we are withholding this request for further clarification from Hong Kong.

4.

In the same context I have referred to the forthcoming circular despatch about future develop- ment aid to the dependent territories because to do so now should make it simpler in due course to draft a covering letter from Sir Arthur Galsworthy relating the contents of the circular to the special circumstances of Hong Kong.

5.

If you think that you can write to Sir John Cowperthwaite along the lines of this draft, then having done so I suggest we tell the Treasury and the other recipients of the Hong Kong telegram that we have had a first response from the Colony to our request for an analysis, but have insisted on a fuller appraisal.

20 March, 1969

Mmv

(H. H. Stewart) Hong Kong Department