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extent land could be made available (c.f. paragraph 4 of Mr Clift's minute recording his conversation with Mr Pasteur).
7.
Mr Morrice's letter of 2 June to Mr Dorward records BP's agree- ment with the FCO view that Hong Kong's role in the development of China's oil industry would be largely dependent on the attitude of the Chinese Government. Mr March concurs generally with this view (his letter of 16 June to Mr Morrice). There appears,
There appears, however, to be general agreement on the attractions of Hong Kong for overseas companies as at least an administrative base. BP emphasised that Hong Kong's success as an oil centre would depend on the Hong Kong Government's determination to advertise the territory's advantages.
8.
The development of Hong Kong as an administrative and service base could lead to longer-term prospects in down-stream activities, although the latter would presumably raise similar practical prob- lems to those considered by ExCo in relation to prospecting in Hong Kong itself. However, this need not prevent us from encouraging the shorter-term development.
9. In summary, points for discussion with the Governor and/or Mr Dorward could be:
(i) the political implications of an oil find bordering Hong
Kong;
(ii) the shorter-term development of Hong Kong as an administrative and service base to what extent forward planning is possible without a clearer view of China's intentions;
(iii) the longer-term prospects for development as a repair/refining/
petro-chemical industry centre;
(iv) the availability of land, in particular for (iii);
(v) the implications of (iii) for the Hong Kong Government's
standard line on requests to prospect in Hong Kong (paragraph 2 above).
Pawels
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5 August 1980
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