From the Secretary of State

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Foreign and Commonwealth Office

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175/3

RECEIVED IN REGISTRY"

- 5 FEB 1987

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4 February 1987

Путре

Croth

من

Thank you for your letter of 20 January, following

up our talk earlier in the day.

I was interested to read the brochure on the Western

Harbour Lantau Strategic Development Project. It is a

highly imaginative proposal. The Hong Kong Government

will be considering it in conjunction with their own

plans for the development of the territory's

infrastructure.

As you will know, the DTI have made a grant to

those British firms interested in conducting a

feasibility study into the project. This is, of course,

without prejudice to whatever eventual decision the

Hong Kong Government will make on whether or not the

project should go ahead.

We shall keep in close touch with the Hong Kong

Government on future developments relating to the project.

GEOFFREY HOWE

Sir Ian MacGregor

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