DB2ATA
HKK 175/3
RECEIVED IN REGISPRY
- 5 FEB 1987
- 2 FEB 1987
12
G
A
WN
FROM:
CO Hum
Hong Kong Department
2 February 1987
DATE:
CC:
Mr Gillmore
DESK OFFICER
Se
REGISTRY
Adrion Taken
Securang
State
Sir D Wilson
HONG KONG: WESTERN HARBOU-LANTAU STRATEGIC DEVELOPMENT PROJECT
"1
A
Problem
1. Sir Ian MacGregor has written to the Secretary of State about the Western Harbour-Lantau Strategic Development project.
Recommendation
2.
I recommend that the Secret;ary of State reply on the lines of
the attached draft.
Background
3. In late 1986 a consortium of companies, led by the prominent Hong Kong businessman Mr Gordon Wu, approached the Hong Kong Chief Secretary with proposals for a major infrastructural development
based on East Lantau Island The development would involve
restructuring Hong Kong's port facilities and building a
airport. Both would be linked to China by means of a new highway
across the Western Territories. Mr Wu claims high-level Chinese
backing for the project.
4.
The view of the Hong Kong Government is that at first sight the
proposal is highly imaginative It is also attractive in that it
involves no up-front public funding: the Government would buy the
airport once built at an agreed price However Hong Kong are taking
the prudent view that given the limited financial information which
is currently available they need to ask a lot more questions.
In
particular they have to establish who would be the ultimate
risk-taker in guaranteeing completion of the project. While the
project would be an undoubted boost for confidence, subsequent
cancellation (perhaps because of diminishing financial viability) would be very damaging indeed. Hong Kong feel that this may argue