The Embassy had no additional evidence of Chinese intentions or attitudes towards the siting of Hong Kong's replacement airport. They consider that the chances of Chiha agreeing to the conditions Hong Kong would need to seek, were the airport to be in China, were slim. On the other hand the Embassy thought that the idea of a joint venture in China might well appeal to the Chinese as keeping their options open over Hong Kong without damaging confidence while, at the same time, obtaining some Western technology at favourable rates, improving facilities at Shenzhen, and obtaining access to new routes for CAAC, If the Chinese put forward a plan for such a joint venture the Embassy thought it might be hard to resist.
4
Recognising that on all counts a joint venture in China was from Hong Kong's viewpoint less attractive than siting the replacement air- port at Chek Lap Kok, the Embassy's conclusion was that efforts should be made to head the Chinese off the joint venture idea by making approaches about the technical and practical aspects of developing the Chek Lap Kok site fairly soon. The Embassy suggested that possible Chinese financial involvement in the new airport (which "could presumably be designed to serve Shenzhen if the Chinese wished") might be mooted quite soon after the initial approaches had been made, The airport could be so designed.
Response from FCO
5
(a)
(b)
(c)
(d)
(e)
On the siting of the airport the FCO:
agreed that the arguments were strongly in favour of the Chek Lap Kok site, and considered the disadvantages of locating the replacement airport in China to be valid; confirmed that Hong Kong's interpretation of the Chicago Convention (set out in paragraph 2(a) above) was correct. They saw serious problems arising if sovereignty over the airport were outside Hong Kong, and no prospect of concluding a satisfactory agreement with the Chinese on sharing air traffic rights;
expressed concern at the risk of having Hong Kong's main air link with the outside world across the border, since however stable the present government in Peking might seem, it could not be assumed that there will be no change. They agreed that this consideration would mean retaining Kai Tak, thus reducing the advantages of building a replacement airport;
considered there was much to be said in favour of the associated development of Lantau which would result from siting the airport at Chek Lap Kok;
saw considerable advantage (from the point of view of Hong Kong's economic future) in retaining so attractive a focus of investment within Hong Kong's borders.
SECRET
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