CODE 18 77
Reference
Mr Evans PEP1b
HITK
CONFIDENTIAL
182/1
RECEIVED BE DECKERY NO. Seen by the Clift
Сс Mr Caines
Mr Benjamin Mr Stevens
PEP
CAIR
BTC Hong Kong
OT4
Mr March
Mr Muir Mr Clift
FCO
INDE
REGISTRY kation Taken
to pc
Aft
wift a com
HONG KONG
NEW AIRPORT
DLSK DEFICER
I
to fute file
сду (ie X and Y).
%
Mr Caines met Mr Bremridge, Financial Secretary Hong Kong and Sir Jack Cater (Hong Kong office in London) this morning. Mr Benjamin and I were present. The principal subject of discussion was the new airport. Mr Bremridge said that the new airport was one (or possibly two) of about five of six major developments that were being talked about in Hong Kong at present, and, in his view, Hong Kong should only proceed with say three or four of them and they had yet to determine their priorities. Apart from other considerations, it raised difficult questions on the development of the
on
territory. Mr Bremridge made it clear that the airport was not a pressing priority as far as he was concerned and he said that his own view was that the Hong Kong Govenrment would need a lead on the future of Hong Kong before it committed itself to this investment. It would be extremely damaging to confidence in Hong Kong if it attempted to raise the finance for the development and failed to do so. He did not think that the decision to proceed would be taken before 1984 for that reason. He said that he had already received approaches from developers with ingenious financial solutions and that the Hong Kong Government had appointed Schroder and Chartered to advise them on the financial issues
created
He said that he wanted to see an Authority to be responsible for the airport developments in the same way as the MTRC had been responsible for the development of the Mass Transit system. Steps had not yet been taken to set this up. On the subject of a negotiated contract, Mr Caines ran over the points in my minute, stressing that we entirely accepted that the advantage of a negotiated contract and the advantage of negotiating with the UK would have to be very apparent before there was any chance of success. Mr Brenridge in return frequently mentioned the need for a satisfactory settlement under the Multifibre Agreement. He also said that PRC contractors were interested in the construction of the airport and would certainly need to be involved, though the Hong Kong Government would negotiate with the PRC on this. (This of course fits in with our contractors' approach to the project). Another mainland China complication could arise over air traffic rights, particularly with the post 1997 situation in mind where the PRC might claim the traffic rights for themselves. This would certainly be a feature, in Mr Bremridge's view, of any discussion: about the long term future of Hong Kong, but it could also get dragged into the question of the development of the airport itself. We will need to keep in touch with Mr Stevens CAIR over this, should it arise, and
CONFIDENTIAL