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9.

The Acting Colonial Secretary said the long and short-term aspects of this matter, including the possibilities for training local bomb disposal experts, were currently under discussion between the Commander British Forces and the Commissioner of Police.

Cross-Harbour Tunnel.

10.

The Acting Colonial Secretary said that the HK Government had changed its stand. Originally it had said that it did not give high priority to this project but, when it looked like collapsing just at a time when this would have been politically damaging, the Government had had to give it greater priority.

11.

The Financial Secretary had said that he would discuss the project in London during his present visit if the opportunity arose.

12.

The Minister said he would discuss it with the C. D. C.

Airport Extension

13.

(a)

14.

(b)

It was pointed out that:

if the runway were not extended this could be serious for BOAC:

Unofficials are now aware of the value to Britain of the H, K. traffic rights.

The Governor felt therefore that some contribution by HMG would

be justified and the Minister said he would take this up.

Joint Educational Project: Technical Training.

15.

The Minister said that he said at his press conference that HMG would look sympathetically at such a project. He asked the Governor now to prepare and submit definite proposals.

16.

The Polytechnic proposal or a second Technical Institute and the possibility of reserving places to which HMG could nominate students from elsewhere in S. E. Asia were mentioned.

Relations with other countries in S. E. Asia.

17.

The Governor raised the question of whether HK should abandon its political isloationism in SE Asia and try now to establish some (to start with informal) relations with political leaders. The Minister agreed that this was worth considering with the Foreign Office.

18.

The Acting Colonial Secretary referred to existing participation in non-political relations and mentioned that economically HK is in competi- tion with most of the countries in the region which tend to rub their hands when HK is in trouble.

Government House,

Hong Kong.

October, 1967.

CONFIDENTIAL

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