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sufficiently eminent to be able to influence the people in Hong Kong, in examining the whole scheme and making financial proposals which would enable the tunnel scheme to be reconsidered as a going proposition. In Montagu's view, these pro- posals might very well include the injection of new finance from outside Hong Kong (he mentioned the possibility of the United States).
4. I am sure he intends to see what he can do with this scheme although his formal object in asking me along was to see what we thought about it. Clearly something needs to be done, if it is thought desirable not to let the whole project die. It seems also clear that there is no longer any rapport between ourselves and Hong Kong and that there is room for an honest broker if indeed one can be found. For our part, however, I hedged a little chiefly on the grounds of uncertainty about the financial arrangements that might be set up but also on the questions of the view that we would currently take of Hong Kong as a 10 year forward risk. We frankly have not considered this latter point in the light of the resump- tion of a normal situation in Hong Kong and we would welcome your comments in particular on this aspect.
5.
Generally, and subject to inevitably reservations, Montague's initiative can probably be welcomed and whatever our reservations there is little doubt that he will do what he can to push it forward.
6.
I am copying this letter to Lucas in the Treasury and Toms, Board of Trade.
Jan
Mer Cottants
K. W. Cotterill)