NOTHING TO BE WRITTEN IN THIS MARGIN

CONFIDENTIAL

10. There are

other points of potential friction, The negotiation's for a Mass Transit scheme in Hong Kong are not going partially well for the British

Consistium biztat

Strong bids from the Japanese and others are in the Sield 11 All these difficulties are pansing at about

Where I seek your support and what I ask of my

colleagues is that in all matters of these kinds

relating to Hong Kong, the Department directly concerned

should remember that HMG as a whole have a responsi-

bility towards the Colony and that we must try to

reach agreement on a course which, across the whole

field of our work seeks to balance the United Kingdo

and the Hong Kong interest, shall shortly be

the same time. Some of thems are inescapable, for example it was inevitable that Brittor UK concerns should overside Has Kony

interests in the recent case of the

reprieved murderes.

!

meeting to discuss the issue raised in paragraph 4 above where I hope that some way of helping the

Governor presentationally may be found. [A reference to sterling agreement if this has gone all right.]

The other issue which should help the Governor at

limited cost to the taxpayer but at some to BOAC's

profits would be to settle the civil aviation dispute

in favour of SAS.

sAs. Finally we must not forget that in

the next couple of months the Hong Kong Government will bring to a close their studies on a Mass Transit

scheme and we hope that the contract may be won by a

British consortium. But if it is a\close run we cannot

expect them to show us favours if we appear to have

trampled regularly on their interest. Nor incidentally do I think this is a matter on which we can give them

orders.

The same may tums out to be the cause of the death penalty as

a

a persia Car

whole. But in other questions, butas (nationality law, and is traffic nights and perasps the Community's GSP I believe that Hay Kom interest could be enough to sway on own The question of shall shortly be meeting to dis ays the first of machin

of Hong Kong's partzel exclusion from the communing's sie aber needs turkeer these more delfiality lalanced issues.

' 7259) Dd.897459 250m 12/72 G.W.B.Ltd. Gp.863

(941) Dd.897300

250m 9/72 G.W.B.Ltd. Gp.863

decision

12

Where I

eck

CONFIDENTIAL

the Hay Koy interest.

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