DRAFT
I. P. V. Hanna,
Principal Trade Commissioner, British Trade Commission,
Rong Kong.
c.o. K. W. Cotterill, Esq.,
E.C.G.D.
CONFIDENTIAL
CRE 8159/0
100/€
Hong Kong Harbour Tunnel
Thank you for your letter of 2nd February about the future
of the Tunnel project. It arrived just as I was going to sign
a short note sending you the attached copy of a letter we have
received from the Commonwealth Office indicating that, as far as
Hong Kong Government is concerned, the project is dead. I
have now had a chance to discuss both letters and this reply with
\.C.G.D.
Michael Montague is back in London and, although Frank Toms
saw him at a meeting on Wednesday, no mention was made of the
Tunnel project. In view of the apparent diversions of opinion
between Peter Soales and John Marden as reported in the two letters
we have not considered it prudent to raise the matter with him.
We shall, of course, take note of anything he may say if he does
raise the matter with us, and E. C.G.D. will, if necessary, put him
in the picture about their position.
Now
As with a number of similar major projects with which E.C.G.D.
finds itself involved, political issues have tended to cloud the
purely oœmmercial relationships of all the parties concerned.
that it seems likely that the project will be deferred I ma a
little concerned that the blame will be put entirely on H.M.G. and
in particular E.C.G.D. There is a danger that, once such a line
has been publicly adopted, this might affect not only future
negotiations on this project but also on other projects. Paragraph
3 of your letter reporting your recent conversations with
Cowperthwaite does nothing to lessen my concern.
/as I see it,