TNAG-0275-FCO40-311-Development-of-Kai-Tak-airport-at-Hong-Kong-1970 — Page 8

5110

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29/10

Mr

Lahd

Miss Deas

CONFIDENTIAL

Reference...

Thank you very wel

Ericy brey Dear 28

Kai Tak

/10

AR

I have discussed the formula which Mr. Royle

might use with both Mr. Wade-Gery here and Mr. Steel

at the Treasury. Taking the Treasury view first, Mr. Steel considers that nothing should be said in

public in Hong Kong which could be interpreted to mean that HMG would be in a position to help Hong Kong

now. He also thought that anything said should leave

the impression that it would be unlikely that we

would be able to help in the future.

2. Mr. Wade-Gery suggested we might use some such

formula as follows:

"This is not an easy time for HMG to think of further commitments. All forms of public expenditure

are at present being severely scrutinised by the new Government. But of course if there are particular considerations that you would like to put to me I should be glad to consider them and to report them to

the Foreign and Commonwealth Secretary and his colleagues

on my return."

3. I tried this form of words on Mr. Steel and while

he could not really argue with the first two sentences, he clearly did not like the last part.

4. Last April the previous Government undertook to look at the matter again next year and the Unofficial

Members of the Executive and Legislative Councils were

so informed.

5. In all the circumstances all I can now suggest is that Mr. Royle may wish to discuss the matter with the Secretary of State on Monday subject to the Secretary of State's views he may think it necessary to speak personally to the Chancellor of the Exchequer. In the Department's view the least that can be said is some- think on the following lines:

"This is not an easy time for HMG to think of

All forms of public expenditure

further commitments.

are at present being severly scrutinised by the new

CONFIDENTIAL

/Government.