TNAG-0334-FCO40-370-Visits-of-Secretary-of-State-for-Foreign-and-Commonwealth-Af-1972 — Page 159

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CONFIDENTIAL

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9

Brief No

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KAI TAK AIRPORT-

BACKGROUND

STATE'S VISIT TO

FEBRUARY 19720

1. In March 1967 Hong Kong asked for a grant

of £24 million towards the cost of the extension

of the runway at Kai Tak Airport.

In July 1968

this application was replaced by one for a loan

of £6 million to cover the full cost of the

extension. In 1969 the Hong Kong Government

applied for a grant of about £1 million from

Colonial Development and Welfare funds towards

the cost of improvements to the air traffic

control system.

2.

Unfortunately, largely because of the

buoyant state of the Hong Kong economy, it proved

impossible to secure the agreement of other

departments to assist Hong Kong in this way.

TRAFFIC RIGHTS

3.

In February 1970 the Unofficial Members of the ExecutiveCouncil prepared a memorandum

on the question of the Defence Contribution.

In that memorandum they commented on Kai Tak

as follows

"The value to Britain of the Hong Kong

Airport should in particular be allowed for,

since Britain obtains substantial benefits from

the bilateral agreements in which HMG barters

landing rights at Hong Kong for foreign aircraft

for landing rights by British aircraft in foreign

/countries.

CONFIDENTIAL