CONFIDENTIAL
HKK 5/12
Reference
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AID FOR HONG KONG:
1.
AIRPORT CONSULTANCY
In his letter of 20 July, at folio 43, Mr Glaves- Smith (DTI) suggested that a good case might be made for financial help of about £200,000 from ODA funds to cover costs of a consultancy study on a new Hong Kong airport. In his reply of 27 July, Mr Wilford proposed that I should explore the possibilities whilst I was in Hong Kong.
2. I took this up both with Mr Thomson, Director of Civil Aviation and, on the lines of the general principle, with Mr Derek Jones, Deputy Economic Secretary.
3. It is pretty clear that it is now too late for us to influence the decision on which firm should proceed with the consultancy. Eight firms two British (Halcrow; and Scott, Wilson and Kirkpatrick), two Canadian and four American, were asked to submit proposals without commit- ment. It is the view of Mr Thomson and his advisers that the British firms have neither the background nor expertise to carry out this survey on the lines required. Of a short list of three firms, an American company, Parsons, have been put forward to the Tender Board as being competent to take on the work. Finance should be made available shortly and the selection confirmed immediately thereafter.
4.
The timetable is all important. At the present rate of growth, Kai Tak is not expected to be capable of exapnsion beyond 1980 and a feasibility study on the quture of aviation needs in Hong Kong is already very delayed (due to hesitation in the Finance Branch of the Secretariat). Mr Thomson is extremely keen that a con- sultancy should be selected as soon as possible and should start work straight away. There is some personal commit- ment in this, since he retires next year.
5. Mr Aston points out in paragraph 4 of his letter to Miss Welch of 24 August and in paragraph 6 of the enclosure that the question of the political future of Hong Kong has bearing on this exercise. Mr Blishen's manuscript note behind the enclosure also deals with this aspect. Mr Aston suggests that for this reason we might be able to maintain that the consultancy should be given to a British rather than a North American firm. With respect, I doubt whether this is an argument that would hold water. Whilst the political future of Hong Kong is highly relevant, the likelihood of any of the various possibilities is, as far as I know, impossible to weigh and there is no concrete forecast that could be made available to any commercial enterprise whether it were British or not.
6. There is also the matter of principle which I broached with Mr Jones. His immediate view was that the payment by HMG for consultancy work would lay the Hong
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CONFIDENTIAL
DD 897152 154596 500M 2/72 GM 3643/2
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