TNAG-0275-FCO40-311-Development-of-Kai-Tak-airport-at-Hong-Kong-1970 — Page 18

Confidential

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Since.......plans have been laid in Hong Kong for the

the extension of the Kai Tak runway and the development of the

passenger handling facilities in preparation for the advent of

Jumbo aircraft. In 1967 the Governor approached H.M.G. for

assistance in the cost of construction then estimated to cost

ti millin

about K. 90 million. At first this request was put in the

form

com or an application fragrant. J. £24

grome. million

•

but

En 2.9

of Zhumin

subsequently it was altered to a request for a loan frémi.

at an riverent Astia 277 repay

in

years.

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15 The Hong Kong Government's argument for seeking a loan from

H.M.G as opposed to financing the whole work themselves is

based on the very considerable capital expenditure to which

they are already committed over the next few years when the

money for Kai Tak would also be required.

2.

This request fell on very stony ground for a variety of

reasons. The British economy was in a particularly unhealthy

state; business and trade in Hong Kong were booming and the

Colony already had substantial reserves in London; the

Colony's revenue account was in continuing and increasing

surplus

above even the expectations of the Financial Secretary.

When the matter was discussed at official level in Whitehall the

Treasury were not wholly opposed to money being provided on the

condition that it was not "new" money. They would not have

being

objected to the money having been found by ODM from aid funds,

but ODM categorically refused on the grounds that His not

"aid worthy" by their statistical criteria.

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