TNAG-0275-FCO40-311-Development-of-Kai-Tak-airport-at-Hong-Kong-1970 — Page 71

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The

projects for which they are already earmarked.

same situation would apply in the case of the Foreign

and Commonwealth Office votes, if it were considered

that on political grounds a contribution from that

source could be justified. The Aid Programme alone

appears to offer the necessary flexibility. The

Ministry of Overseas Development are not, however,

prepared to provide capital aid to Hong Kong in the

Colony's present economic circumstances. They can

see no justification for doing so at the expense of

other more needy countries in view of the buoyant state

of the Colony's economy and finances. In their view,

any expenditure for the benefit of British civil

aviation should be met from the appropriate spending

head (i.e. the Board of Trade vote), which is not the

Aid Programme. I understand that no suitable source

of non-government funds could be found.

3. I must admit that, against the background of our

own serious (but improving) economic situation and the

contrasting buoyancy and high rate of expansion of

Hong Kong's economy, the Colony has not got a strong

case for assistance on general economic and financial

grounds. Nevertheless it does need to tackle/ over

tackle

the years ahead a formidable programme of development

in social and other services (the urgency of which has

been neightened by the events of 1967) which will tax

its resources to the full. And it foresees the need

to spread some of the burden of providing the

resourus

I

necessary financial bod

Load for which purpose the airport

project is ideally suited since it is anticipated that

airport revenues could service a loan on reasonable

(ans

and in this (H.K.gart) [H.K. gust)

they have being encouraged

by HMG)

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NOTHING TO BE WRITTEN IN THIS MARGIN

/terms