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Telex 17:21
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Your reference
Our reference
Date
llow unit 1034
Beady
AIRBONT USER CHARGERS
Kay 1 refer you to FOD telegram 2007 of 18 October regarding the compatibi of the user charges with Beranda 2 and with the 1080 guidelines (Council Statement of 1981). PCO telegram muder 2105 also rafers.
FCO Legal Advisers raised certain questions regarding paragraph 3 of telegram number 2097. This was because they were not avare of all the details of cur noeting with Jones lust August. 1 think, however, that it would be deniroble to ret cut rather more fully the conclusions which we have reached following that meeting. It might be convenient. if 1 go this by setting out below a of paragraph 3 of telegram number 2007:
If i
"3.
Provided the user charges do not result in the advport earning than a reasonable rate of return on the value of its annets, includiry
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the opportunity costs of airport land, the charges would sons to be equistent with our obligations under Bermuda 2 and in accordance with the IC20 gulur)ings. However there remains the problem of the substantial cash surplus which has been generated over a number of yours by the airport operations. I now there were no intention to construct a new alsport then the surplus, which has been accumulated with this in view, should be drawn upon before there is any further inercase in user chargen. Howver, if the decision has been perely deferied) foi the time being, and is lik y to be meatas bef the end of the decany, one could probably justify retaining the su against the future investment. So long as this ition were to j user charges could be incrcase only to cover any unavoidable incre. An coste due to infletion, provided always that the level of the currant and future charges inus not produce more then a reasonable return on and makes ro provision for the future airport
can be of any further help picaer let rm know.
Yours sincerely
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F MONHAN
Copaus to: h bust, roo dejal. Povisers
My Innes, MARO
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