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it might do so in the 1980's.
12.
The Governor said, by way
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of example, that Hong Kong might consider it desirable to start major capital projects required for the 80's earlier so as to benefit from the private investment still available while prospects of amortisation still existed. The underground railway was a case in point. In a few years. time it could no longer attract private capital. In answer to a question of the S. of S. Mr. Haddon-Cave said that it would be expensive (cost at 1970 prices was £550 million. A decision on the railway would be made in the second half of this year and, if it was decided to go ahead, discussions would then have to be held with financial consortiums in view of the cost, the abnormally long amortization period and the non-viability of the operation until the 21st century.
S. of S. asked what had happened about the Runway Extension. Sir Hugh Norman-Walker said it was already under construction and was being paid for by Hong Kong. The Governor said that the publicity over the runway extension had increased the local feeling that U.K. should give more aid to Hong Kong. He thought that for political 1 not economic reasons, aid from U.K. would be a good local indication of UK's continued concern and responsibility for Hong Kong. In reply to the S. of S. on why U.K. had not provided a loan for the airport extension, Mr. Haddon-Cave explained that Hong Kong had made several tactical errors. In 1967, we had applied for a loan on moral grounds; 1968 we applied on financial grounds (in a year when we had a large surplus), and our final application for a loan was based on our potential financial problems in the mid-70's, an argument which O.D.A. were administratively unable to accept. However, aid from the UK need not be large. Some assistance towards the cost of our Air Traffic Control
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