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proceed in such a way we should have to be sure that the loan would
be fully subscribed and this would entail a certain amount of
encouragement to firms with trading connections in the area. We
have some reason to believe that to proceed in this way would be welcome in the Colony and achieve the objective at which we are
aiming.
5.
It is, of course, impossible to put such a matter through very quickly and certainly not before Mr. Royle's visit to Hong Kong
between 9 and 13 October. Tenders close for the Kai Tak extension
on 12 October so there is bound to be even more speculation than
usual about HMG's intentions. For the present I believe that the situation could be held if HMG were prepared to consider the second possibility set out above (on the assumption that the first is a non-starter) and if Mr. Royle could be authorised to say in reply to enquiries that HMG are looking at the question of assistance to the Hong Kong Government in respect of the extension of Kai Tak in the context of the overall review of the nation's economy in which they
have been engaged since taking office in mid-June.
6.
If this line could be agreed now, for Mr. Royle to use if questioned, the matter of how best to meet this problem of subs tance
can be pursued through Whitehall machinery.
Hong Kong Department 30 September, 1970.
Rana
(E. 0. Laird)
with what is proposed.
agree
all we need is
de i
For The present
formula for M: Royle to Hongkong. Kun hilford 1/%
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