TNAG-1662-FCO40-2310-Hong-Kong-Western-Harbour-Lantau-Strategic-Development-proje-1987 — Page 52

1 April 1987

APP/2268/8

Mr. R. Griffins, Assistant Secretary,

Department of Transport,

2Marsham Street,

LONDON SWLP 3EB

Dear

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Copy PA

615.

Mr Fahr

175/3 pet

BRITISH AIRWAYS

Comet House (S8)

PO Box 10

Heathrow Airport London) Hounslow

TWO JA

Telephone: 01-7595511 Cables: Britishair

8813983 Bawys: G

Direct Line

01.562.5550

ccMr. Oates (542 of the Airports Act?)

Mr Lord IA

Mr Morgan FCO/MATED

Please consider in conjunction with other

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apy addressees: is there offer Mr Cater?

mentioned

to

HONG KONG AIRPORT

26

advice

ive

could/shore

you recently my concern at the high level of profit made by Hong Kong Airport, coupled with the fact that we have been unable to persuade them to modify the profit level.

I have just received their income and expenditure account and balance sheet data for 1985/6 and projections through to 1987/8 and I attach a copy. You really dont need me to expand upon our concern that it generates a surplus of $552 million on a turnover of $913 million; nor that although we pay nominal taxation (it is a Government department) no interest is received on the

accumulated surplus.

The reserves are justified on the basis that they are towards a new, replacement airport, which I doubt will be built as envisaged and there are clearly considerable political aspects.

Are there any channels that I could take this up within the UK Government? I would not contemplate any such action without first taking your advice.

Yours sincerely,

Tom Center.

ENC.

TOM CARTER,

Head of Airport Policy Planning

British Aravays. Ph Registered vitae e

Speedbird House

Heathrow Airport Loudon Hounslow MANGIA

Registeredin England No !

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