Reference
HKK 5/12
62
Mr Crowson
c Mr D M Kerr (FPA G62/G)
cc Mr R IT Cromartie (A & TD G66/1)
1. Please see minutes attached.
2. As you will see both Mr Kerr and Mr Cromartie have no objection to a letter issuing from Mr Wilford as drafted (with Mr Cromartie's amendments). Although Mr Kerr has reservations about the proposals per se, I think a letter along these lines should go.
An answer is still owed to Mr Glaves-Smith's letter of 28 July.
3.
With reference to Mr Kerr's useful and helpful minute, I have the following comments:
•
2.(a) and (b). I do not know what sum Hong Kong would want to propose. I am sure they have no idea themselves but it is likely to be very substantial (£350 million was a sum mentioned to me in connection with the airport development over the next decade).
2.(c) and (d). I think there is a distinct difference. Hong Kong can finance an airport feasibility study costing around £200,000 out of current airport income. Were the UK to pay this and then get the contract worth say 50 times this figure there could be charges of malpractice. £10 million which I agree would have to be linked with the UK contract - would be "aid".
would be "aid". A political decision in letting the contract would have to be taken on clear economic and financial grounds. The Hong Kong Government would not have to use their own resources which could then be used for other projects, nor raise the money commercially, nor pay bank rates of interest.
On the other hand a soft loan of say
4. I agree however that we are on better grounds on the aid projects put to us officially from Hong Kong in Mr Haddon-Cave's letter of 15 August. I would not propose that the loan for airport development with which these minutes have been concerned should take precedence.
Fellow
M A Goodfellow Hong Kong and
Indian Ocean Dept
20 September 1972
DD 897152 154596 500M 2/72 GM 3643/2
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