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CONFIDENTIAL
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5. With regard to timing: to build a new airport at Chek Lap Kok in time for it to be ready by 1990 when Kai Tak will be totally saturated, we would need a decision to go ahead by the end of 1982. Meanwhile we are accepting expenditure on a whole range of studies and consultancies which we realise will prove nugatory if for one reason or another the Chek Lap Kok project is abandoned. One of these studies, which will be starting in the early summer of 1981, will be the air traffic control system; and at a fairly early stage this will involve discussion with CAAC so that the Hong Kong and Chinese systems can be properly integrated. This is comparatively low-level routine stuff, and I presume you would agree that there is no objection to our attempting to initiate this at any time convenient in the course of 1981.
6. On the other hand, we will also have to talk finance with the Chinese (see paragraphs 6 and 7 of the attached paper). This will raise fundamental points of principle, and though some outcome will obviously be necessary before the end of 1982, the timing and method. of approaching the Chinese will need to be discussed with you and Peking nearer the time.
Yours ever,
(I C Orr)
ههه
Iain
cc T JB George Esq Peking
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