TNAG-0643-FCO40-791-Involvement-of-Hong-Kong-in-air-services-agreements-1977 — Page 148

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(d) eliminate the dangers inherent in an approach (including a turn) over the densely populated area of Kowloon.

The first two of these factors might well yield a profit which would cover the cost of building the new airport. The greatest drawback was that, even with the new road and bridge now planned, it would take 45 minutes to get from the Centre of Hong Kong to Lantau as against the present 15 minutes to Kai Tak.

13. I said that the Governor's explanation put an entirely new complexion on things. When the project had been mentioned by Hong Kong officials on previous occasions, I had been given to understand that the whole project (including the cost and disturbance involved in building a new motor road and bridge) would have to be justified in terms of the need for additional airport capacity. There were no indications that Kai Tak was likely to reach Heathrow's state of congestion in the near future and I had expressed considerable reser- vations about the desirability of committing very large sums of public money without the most careful scrutiny of the need. It was easy to draw graphs of traffic growth: but the real need for a new airport could only be determined by rather more careful analysis of the factors involved. If there was any question either about the need for the new airport, or at least about its timing, we would be very glad to cooperate with the Hong Kong Government by making available our own expertise, both as regards the likely growth of air services (in- cluding the various bilateral considerations) and as regards noise and other factors.

14. The Governor thanked me for this offer and said he might well wish to take it up.

Conclusion

15.

The meeting closed with the Governor emphasising, once again, that while he was not asking me to make any changes in our present stance regarding traffic rights at Hong Kong, the major change in the UK's general economic policy towards Hong Kong and the pressure of public opinion might force this upon him.

GT ROGERS

Department of Trade TOKYO

9 Novemuer 1977

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Circulation:

Mr R A Burrows, CNG, FCO

Mr B Lello

Mr I Standen

Mr T H Stables

Fir G A Dick

Mr R Colegate, Mr G Mall Willión.

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CAA HOARTE