TNAG-0324-FCO40-360-Development-of-Kai-Tak-Airport-at-Hong-Kong-1972 — Page 33

CONFIDENTIAL

For discussion

on 22nd June 1971

XCC(71)33 Copy No

MEMORANDUM FOR EXECUTIVE COUNCIL

..... of 27

NEW AIR CARGO TERMINAL: KAI TAK INTERNATIONAL AIRPORT

On 28th July 1970 the Executive Council considered memo- randum XCC(70)41, a copy of which is annexed, in which were set out the various alternative types of air cargo terminal examined in the Consultants' report on the development of air cargo handling facilities.

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Honourable Members advised, and the Governor ordered, that Alternate A (a consolidated terminal, accommodating all carriers) should be adopted subject to:

(a)

a satisfactory detailed report by the Consultants;

(b)

the approval of funds for such a report by the Finance Committee of the Legislative Council.

The Finance Committee subsequently approved the provision of the necessary funds and the Consultants are at present engaged on the preparation of the report.

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In paragraph 12 of memorandum XCC(70)41 the hope was expressed that it would be possible to establish a consortium to run the new terminal, this consortium to be representative of the major airlines and godown and cargo handling interests in the Colony. Subsequently, discussions have been held with

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(a)

(b)

Jardine, Matheson & Co. Ltd. and Butterfield and Swire (HK) Ltd,, the two companies which had earlier expressed an interest in operating the new terminal and which between them represent a considerable proportion of the air- line interests in the Colony; and

the Hong Kong and Kowloon Wharf and Godown Co. Ltd. and the Hong Kong and Whampoa Dock Co. Ltd. (which controls, through China Provident Co. Ltd., North Point Wharves Ltd.), the two public companies already engaged in cargo handling.

As a result of these discussions, agreement has been reached in principle on a basis for the establishment of a consortium to build and operate the new terminal, viz:

CONFIDENTIAL