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4. REPORT WILL BE LONG AND WITH MANY ANNEXES SO THAT EXCO
MEMBERS WILL NEED TO HAVE IT FOR TWO WEEKS TO STUDY BEFORE
TAKING IT IN COUNCIL. THUS EVEN IF THE DRAFT IS READY IN
TEN DAYS' TIME (PROBABLY THE BEST POSSIBLE) IT WOULD NOT BE
TAKEN UNTIL EARLY FEBRUARY.
5.
G.I.S. HAVE BEEN AUTHORISED TO GIVE THIS TIMING TO PRESS
AND IT IS CARRIED BY SOUTH CHINA MORNING POST AND STAR. OTHERS
ARE STILL CARRYING QUOTE DECISION IMMINENT UNQUOTE STORIES.
6. IT IS STILL UNLIKELY THAT REPORT WILL MAKE FINAL
RECOMMENDATION ON METHOD OR CONTRACTORS, BUT WILL LEAVE THIS
FOR FURTHER NEGOTIATION AND CONSIDERATION.
7.
MEANWHILE SPECULATION OVER THE ALLOCATION OF CONTRACTS
IS BEING USED TO ASSIST MANIPULATION OF SHARE PRICES IN THE STILL CRAZILY BOOMING STOCK MARKET. CHINESE PRESS HAVE FOR PAST FEW DAYS CARRIED REPORTS AIMED AT DEFLATING HUTCHISONS AND JARDINES AND INFLATING THE CHINESE CONSORTIUM. AT FIRST IT WAS REPORTED THAT QUOTE HUTCHISONS PROPOSAL UNQUOTE HAD
BEEN QUOTE REJECTED BY LONDON UNQUOTE, THEN THAT THEY HAD
WITHDRAWN SEMICOLON CLAGUE DEMANDED A RETRACTION OF THIS WHICH
WAS PUBLISHED. SINCE THEN THE CHINESE LINE HAS BEEN THAT
HUTCHISONS WILL GET THIRTY PERCENT, THE CHINESE TWENTY PERCENT AND THE REST SPLIT VARIOUSLY. SHARES OF MEMBERS OF
7 CHINESE CONSORTIUM HAVE IMPROVED.
9. IN FACT POSSIBILITY OF ANY MAINLAND CHINESE INVOLVEMENT
OTHER THAN NORMAL SUPPLY OF MATERIALS CAN BE DISCOUNTED.
EVIDENCE FROM OTHER SOURCES SHOWS THAT NEITHER CHINESE NOR
HONG KONG GOVERNMENTS WOULD WANT IT. JONES ALSO DISCOUNTS
LIKELIHOOD OF LOCAL CHINESE CONSORTIUM AS SUCH GETTING A
SLICE.
9.
WEEDON AND I HAVE FED FINANCIAL TIMES 4 JANUARY ARTICLE ON CONSORTIA (IN WAREHOUSING SUPPLEMENT) TO CONTACTS IN
STEERING COMMITTEE.
TPS AT 10/0947/// 0847Z AJT
VRECD AT 10/9847Z I.D.