Ed. (3746)

NOTHING TO BE WRITTEN IN THIS MARGIN

RegistK 6/548/3 No.

SECURITY CLASSIFICATION

Top Secret.

Secret.

Confidential.

Restricted. Unclassified.

PRIVACY MARKING

DRAFT LETTER

To:-

M. P. V. Hannam, Esq.,

United Kingdom Trade

Commissioner,

HONG KONG.

In Confidence

Type 1 +

From

W. S. Carter

Telephone No. & Ext.

Department

Miss best

Filse Jani For seen.

Lose

1413

Pographic sedimaża i love of end up between the Goremer

a)

Q Love Shepherd

I am afraid that I have fallen behind

schedule with my promised fortnightly newsletters:

please forgive me. I am grateful too for your own contribution to this exchange, 6/6/5 of 28th February.

2.

Almost inevitably in these days, I begin

with the Tunnel. But I do not propose to refer

to the matter at length. You are very well in

the picture gownkayas about this, and almost

certainly better informed than we are. I see

from your own telegrams that you are allowing

yourself to feel a little more optimistic

nowadays and we certainly hope that in the end

ECGD will win the day. But we do not really expect the company to take a decision until they

have extracted the maximum advantage from the strong bargaining position into which French/

British competition has put them. We have tried to ensure with the Governor that no decision is taken in favour of the French, however tempting

an offer they might make, without ECGD being

given an opportunity to match it. But I confess that I do not really believe that there is any

risk of this for the reason I have explained:

the Tunnel Company will surely not close the

bidding until they are certain the last bid has

been made.

3.

caredil

We took due note of the suggestion you made in your "Christian" telegram no. 3 that we should inspire a Parliamentary Question with the

object of concentrating public speculation in Hong Kong on the commercial aspects of the Tunnel

WE JC. rather than on political factors. Of course we

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