1986-09-12 14:43 DPT INDUSTRY, ASHDOWN KSE

01 828 0931 P.02

be that the Chinese are committed to the project and

at Hong Kong's representations should concentrate on making it as safe as possible.

On 10 September, the Governor and members of the Executive Council (EXCO) received assurances from the Prime Minister in London that HMG recognised its responsibility for Hong Kong's safety and from the exchanges it had had with the Chinese, was content for the project to proceed.

It is hoped that these assurances, and the LegCo visit

to Peking, will establish an atmosphere in which contracts can be signed without too hostile a public reaction in

Hong Kong. However the issue will remain sensitive,

particularly with the media, and we recommend that Mr Morrison

requests an update from the British Trade Commissioner,

Mr Holloway, when he arrives in Hong Kong.

TOTAL P.02

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