DEPARTMENT OF TRADE

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R D Clift Esq

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15 July 1982

Dea Clift

↑ Plano 16/7

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You will know that, for some time, we have been pursuing the possibility of securing a negotiated contract for the new Hong Kong airport. Recent indications and, in particular the advice from Derek March, suggests that we should not continue to press the authorities hard on this point and indeed, it seems quite probable that a different form of contracting arrangement will be chosen.

2

In the course of a visit last month John Caines raised the matter with the Governor and although Sir Edward was careful not to give any indication that he was likely to be swayed in one direction or the other expressed interest in receiving a note setting out the advantages of the negotiated contract approach. He said that this should not be angled particularly to the airport and that, of course is a wish which we should respect.

3 Despite our somewhat flagging hopes, we think that we should still respond to the Governor's invitation and we have prepared a note in general terms on the advantages of negotiated contracts. Neither in this, nor in the covering letter (copies attached) have we specifically mentioned the airport project and indeed the benefits identified would be applicable to largescale projects of whatever kind. I would be grateful if you could let me know urgently whether you have any comments on the drafts.

4 I am sending a copy of this letter and attachments to Tom Muir (OT4).

Yours sincerely

топи Нион

A C Hutton

M. Belian

Draft reply pl

Mr. Hutton inframed line) we

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