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5. HE STRESSED THAT HE IS DESPERATELY CONCERNED TO BE ABLE

TO PROVE THAT HE HAS PLAYED FAIR WITH ALL THE COMPETITORS AND HAS

DONE THE BEST THING FOR HONG KONG'S INTERESTS. HE DOES NOT

WANT TO BE AT ANY RISK OF BEING ACCUSED OF FAVOURING ONE MORE

THAN THE OTHER AND TO THIS END, FOR EXAMPLE, DISUCSSION WITH

ANY PARTY IS RECORDED AND EVERY TELEPHONE CONVERSATION TAPED.

THUS HE COULD NOT GIVE US INFORMATION ABOUT THE JAPANESE

OFFER UNTIL AND UNLESS HE WAS PREPARED TO GIVE

JAPANESE INFORMATION ABOUT OURS. HE WILL DO THIS BUT QUOTE

AT OUR CHOOSING AND TIMING UNQUOTE SO AS TO QUOTE SQUEEZE THE

BEST UNQUOTE OUT OF EACH PARTY. WHEN THE NEGOTIATIONS START

HE EXPECTS TO HAVE QUOTE TO PLAY IT ROUGH UNQUOTE AND TO THIS

END WILL DETERMINE HOW MUCH HE LEAKS AND WHEN TO EACH PARTY.

6. AS TO TIME-TABLE, HE SAID THAT HE IS NOW PRESSED TO

PREPARE HIS BUDGET FOR 28 FEBRUARY AND DOES NOT THINK THAT

BETWEEN NOW AND THEN HE CAN DO MORE THAN PUT THE M.T.S.

DECISION IN PRINCIPLE AND SHORT LIST (STILL BEING WHITLED DOWN) OF CONTENDERS TO EXCO. THEREAFTER HE EXPECTS TO REQUIRE

A GREAT DEAL MORE INFORMATION FROM ALL PARTIES AND RECOGNIZES

THEY WILL NEED TIME TO PREPARE THIS. HE GAVE ME OFF-THE-

RECORD ESTIMATE NOT TO BE ATTRIBUTED TO HIM THAT HE WILL

BE ABLE TO ASK THE SHORT LIST FOR FURTHER PROPOSALS

TOWARDS THE END OF FEBRUARY FOR PREPARATION IN MARCH WITH

A VIEW TO FURTHER NEGOTIATIONS THROUGH APRIL AND SIGNATURE

CONTRACT EARLY IN MAY. HE AT PRESENT ENVISAGES THAT

DISCUSSIONS IN APRIL WOULD BE MAINLY IN THE CAPITALS BECAUSE

HE FINDS IT IMPOSSIBLE TO BREAK AWAY FROM OTHER RESPONSIBILITIES

IF HE REMAINS IN HONG KONG (BUT HE HAS NOT YET PUT THIS TO THE GOVERNOR).

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