CONFIDENTIAL

As the Governor has put it, Hong Kong has a political need

for outward and visible signs of a special and beneficial

relationship with the United Kingdom. In practical,

commercial terms, if we are not able to make such a gesture,

we may run the risk of prejudicing the prospects of United

Kingdom contractors if the proposed underground in Hong Kong

goes ahead.

Maria

E O Laird

Hong Kong Department

10 March 1972

We

mut hope

hope that

if The Governor

foreverd with plas for airk HK, they read ot be financed in 1972/3 but can be defecard K1973/4. Ha a marker for about £500,000 for air but eqt

short

while

ago.

له

the Aid Committee

Ku

For

Two footnotes on Mr Laird's minute above:

(a)

On the bottom of the first page he refers

to Hong Kong's grievances on textiles and traffic rights. Any .grievances on this score are likely to be intensified if we do not come through with something after the Secretary of State's promise in Hong Kong to consider

2.

CONFIDENTIAL

/whether

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