TNAG-0281-FCO40-317-Visit-of-the-Chancellor-of-the-Duchy-of-Lancaster-to-Hong-Ko-1970 — Page 216

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SECURITY CLASSIFICATION

Confidential.

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CONFIDENTIAL

DRAFT Background Note

To:-

Type 1 + 4

From

Telephone No. & Ext.

Department

Fair

Asper.

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ANG

2.9,46.

KAI TAK AIRPORT

The Hong Kong Government is extending the runway

(including taxiways and parking apron) and the

terminal buildings at Kai Tak airport at a total

cost of about £13 million. Two years ago they

asked us for a loan of £6 million at 7% interest

repayable over fifteen years to help pay for this

work, but it has not so far proved possible to agree

The only possible sources of UK funds

would be either the aid programme (but beuse of

her wealth, Hong/Kong is not considered to be "aid worthy") or perhaps the Board of Trade's

civil aviation votes.

to this.

but they have

ca

But the latter have been

pruned and there is no money for additional projects.

Projects T

unless projects already agreed are cancelled

Z

2. Unofficial members of the Hong Kong Legislative

Council raised this subject in April this year

and were told that although the United Kingdom

Government could not help at that time, the matter

would be given further consideration in a year's

time.

for assistance.

On financial grounds Hong Kong has a weak case

Government reserves are considerable

(about £80 million) and revenue continues to outstrip

expenditure each year. The case for assistance

rests on political grounds and on meeting the strong

/public.....