TNAG-0324-FCO40-360-Development-of-Kai-Tak-Airport-at-Hong-Kong-1972 — Page 4

Mr Clewley

Reference

ASSISTANCE FOR KAITAK AIRPORT

Please see the letter from Mr Haddon-Cave to Mr Laird of 31 December, which replied to Mr Laird's earlier letter of 21 December (at 10).

As I see it, this latest letter places us in an

extremely awkward position. Mr Laird in his previous letter expounded the reasons why aid was not forthcoming.

The fact that Hong Kong decided to go to Japanese & Italian

firms was fortunate for us, as providing ammunition for

our otherwise pretty weak argument for refusing help. However, Haddon-Cave's new letter exposes the crux of

the matter, i.e. the moral obligation of the UK to at

least contribute towards the cost of development of Kaitak when we gain so much advantage from using the traffic rights as a bargaining counter in negotiations.

However, we know that it is extremely unlikely that we shall be able to get other Whitehall departments to 'fork out' on Hong Kong's behalf. The alternatives, therefore

we have to choose between are :

(a) ignore the letter (as done previously)

(b) acknowledge in general terms (I do not know how -

there is nothing to say)

(c)

initiate a 'Help Hong Kong' campaign by sounding

A

the views of other departments, ie internally, & DTI & CDA

In the final paragraph of Mr Laird's letter he id

that HMG would be prepared to consider providing aseistanc if an urgent need were to arise & a specific case were put forward.' I suggest we initially sound the views of FPAD & A & TD. So long as we could be absolutely sure that

we would get the money, wecould then write back to Haddon-

Cave asking him for a specific new suggestion for aid.

hur haird.

is

I this is something

altrough her Karttra lowe is not a greation of aid".

ендо

is charty

might hope

he determined

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APB Lamber

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I February, 1972.

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mizahit

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