ROOTRICTED
RECEIVED IN REGISTRY NO. 51
23 JAN 1974
аккаль
File
HKK3/ She/5
108
106
108
r Stuart
Air Youde
lou
BA3 file
with MATO
1. Mr Youde asked what was the position in respect of aid for Hong Kong airport, in connection with an allegation made to
r Rogers (DTI) that the Hong Kong Government felt a grievance. This arose over HMG's position over SAS air traffic rights into Hong Kong and because HG had not made any contribution since 1956 to development costs at Kai Tak. Hong Kong's grievance is allegedly enhanced because they claim to have interpreted the Secretary of State's remarks, at a meeting on 14 February 1972, "to mean that ODA's refusal of aid would be overridden."
PA
2. There is a long history over the aid issue and the airport. Aid has been consistently refused because Hong Kong did not fit into our aid criteria because of the strength of her economy and her very large reserves. In the particular instance quoted there is no justification for the impression described in paragraph 1 above. The record made by the Hong Kong Government of the meeting in uestion shows that the Secretary of State, in reference to a quation by Sir A Rodriques about HMG's control of air traffic rights and Hong Kong having to build and maintain the facilities, said that "it might be that our rules for the provision of aid we're somewhat rigid." The draft verbatim notes of the meeting nowever give the Secretary of State's reply: "Will look once again at this question. It will not be easy to provide aid for airport development as the conditions are rather rigid and aid is confined to non-profit making enterprises." Mr Browne (LegCo) suggested "contributions could be given towards navigational aids." The Secretary of State replied "This specific suggestion for helping with navigational aids will be considered." Neither of these records can be construed as involving a commitment to "over- ride the ODA".
3. On 7 July 1972 Mr Laird, then Head of HKIOD, wrote to the Acting Deputy Colonial Secretary about outstanding issues arising from the Secretary of State's visit. No reference was made to general aid for the airport but under the heading "UK Contribution towards Navigational Aid for Hong Kong Airport" is the comment "We are awaiting the Governor's proposals." These reached us in a letter from Mr Haddon-Cave dated 17 August 1972. A decision on whether IG can provide navigational aids - the request was for an air traffic control radar simulator is still awaited. I have dealt with this issue in a separate submission. There has been no comeback on general aid for the airport, although it is certainly an issue which rankles.
234
21 January 1974
* all refs To HKK3/548/5
DROPDTCMWD
1972
M A Goodfellow
Hong Kong & Indian Ocean Dept.
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