TNAG-0962-FCO40-1181-Possible-new-airport-for-Hong-Kong-1980 — Page 40

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5. The supposed advantages of the Chinese site are cheapness (it is estimated at 50% - 70% cheaper than the Chek Lap Kok scheme) and the boost that would be given to business confidence by a long-term project involving Chinese/Hong Kong cooperation.

6. The problem of confidence may create difficulties on the inter- national market in raising finance for the Chek Lap Kok project without a further statement by China on the future of Hong Kong or some other gesture calculated to put minds at ease. Paragraph 8 of the background paper raises the question of canvassing Chinese interest in part-financing Chek Lap Kok. The idea of participation in such a project may appeal to the Chinese as a suitable gesture to boost confidence, and might serve to head off any Chinese proposals that may be brewing over a shared airport at Shenzhen.

7. Iain Orr in his letter of 12 September asked for confirmation that the view, expressed in paragraph 12(c) of the paper, that air rights derive from territorial rights, is a correct interpretation of the Chicago convention. MAED's legal advisers confirm that it is.

23 September 1980

A W Friar

Hong Kong and General Department

tw Cuft.

a

1

аджё

with the Currerur that we may have

food bargaining card in proposing

y

Quan

auport in China

my

but that the price is not only fantasticaly ligh but chro

that there is a danger of the project and the future of Hors Kony become intwined this could be disastrous. Al mistincts tell me we showed heep much clear ofolis proposal

мен довой proceed with Chel hap kon with a gossible Chicusse financial

financial stake in IV.

and only

السعد

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239.