The United Kingdom interest derives from the profitable rights
enjoyed by BOAC at Kai Tak and from the very considerable value of
traffic rights at Hong Kong in negotiating traffic rights for
British airlines elsewhere in the world (see paragraphs 9-13 below).
8. This interest has been recognised by HMG in the past. In 1950
£75,000 was contributed to runway work and a further £50,000 was
provided from Colonial Development and Welfare funds for airport
telecommunications.
In 1959 HMG agreed to contribute to the cost
of the existing runway, taxiway and terminal building (£7.3 million)
by making an interest free loan of £3 million repayable over fifteen
years. Half of this loan has so far been repaid (repayment
commenced in 1961).
The U.K. Civil Aviation Interest
9.
Because Hong Kong is United Kingdom territory, HMG is responsible
for Hong Kong civil aviation matters in the international Civil
Aviation Organisation (ICAO). This means that there is a
responsibility for ensuring that Kai Tak is maintained at a standard
capable of meeting reasonable requirements in accordance with ICAO
Regional Plans.
10. Next to London, Hong Kong is at present the most valuable
international traffic point remaining within United Kingdom
responsibility.
It is valuable first because of the revenue derived
by BOAC from services to and from Hong Kong, and second through the
important concessions in traffic rights secured for British airlines
in exchange for traffic rights at Hong Kong granted to airlines of
other countries in air services negotiations.
11. BOAC estimate that the total revenue (as distinct from profit)
derived from Hong Kong passenger services by all the major long-haul
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