TNAG-1025-FCO40-1275-Visit-by-Lord-Carrington--Secretary-of-State-for-Foreign-and-1981 — Page 168

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Public Order Ordinance, bus fare increases, personal tax allowances

and trade union disputes. These are essentially matters for Hong

Kong Government. No reason for HMG to intervene.

KAI TAK AIRPORT

saturated.

20. Kai Tak airport will need to be replaced by 1990 when it will be

Present preferred site straddles Che k Lap Kok Island,

north of Lantao Island. No firm decision has yet been taken but a

final decision to proceed should be taken by the end of 1982. US

firm (with whom UK Civil Aviation Authority is associated) recently

won contract for master planning study.

21.

Certain Hong Kong businessmen have suggested to Chinese

authority that new airport should be built just north of the border

with China. The Hong Kong Government was not consulted about these

approaches and opposes the idea, although a few members of

Executive Council favour it. It would raise complex political and

legal problems, particularly over air services rights. Chinese will,

however, have to be brought in eventually, even on Chek Lap Kok

proposal, because it is unlikely that finance for project could be

raised without some assurance on the future of Hong Kong beyond 1997.

There will also be a need to discuss technical matters with Chinese.

CASTLE PEAK 'B' POWER STATION

22. (See Brief No 14) UK group led by GEC and Babcock have won a

provisional order from China Light and Power and Esso Eastern for a

second coal-fired power station at Castle Peak (Tap Shek Kok) (Value approximately £550 million). GEC/Babcock already building smaller

Final approval of contract should be given between 23

If so, way will be clear for Secretary of State to

'A' station.

and 30 March.

announce deal when he visits Castle Peak site (the Press will be

included in this visit).

/23.