TNAG-0275-FCO40-311-Development-of-Kai-Tak-airport-at-Hong-Kong-1970 — Page 64

Mr. Godden

CONFIDENTIAL

Financial Assistance in the Development

of Kai Tak Airport

Sir Leslie Monson has shown me a copy of Mr. Carter's

submission on this subject. I realise that we need to be able

to show the Hong Kong authorities that we have left no stone

unturned and, if a letter to the Treasury is necessary for this

purpose, I would not disagree with the draft submitted by Mr.

Carter. But I think it is most unlikely to produce any helpful

results and there is some risk of it leading to responsibility for

providing financial subsistence for Hong Kong being fastened firmly

This could not be met from our present Vote nor

on the F.C.O.

from the provision within our PESC category.

I would seriously

doubt whether the Treasury would consider providing new money.

As paragraph 3 of the draft makes clear, the economic argument for

providing assistance to Hong Kong is poor, particularly as the

Hong Kong Government have decided to go ahead with their plans. For

this reason also I think that ODM are on strong grounds in refusing

to provide capital aid for Hong Kong from their Vote and I have

considerable doubts whether we would be justified in joining with

other Departments in trying to persuade ODM to bend its rules (last

sentence of Mr. Carter's submission).

Copies to:

Sir L. Monson

Mr. Wilford

Mr. Gallagher

Mr. Carter Mr. Wade Gery

Jumt

(W. I. Combs )

26 March, 1970/ I agree

CONFIDENTIAL