GRS 400
CONFIDENTIAL
FM HONG KONG
TO PRIORITY FCO
TELNO 319
CONFIDENTIAL
OF 270645Z JANUARY 87
INFO ROUTINE PEKING
HKK
1753
RECEIVED IN REGISTRY
27 JAN 1987
PERSONAL FOR HUM, HKD.
DESK OFFICËR
IND: X
REGISTRY
PA
Action Taken
B
YOUR TELNO 227 : NEW AIRPORT.
Об
1. WE QUITE AGREE THAT WE NEED TO KEEP CLOSELY IN TOUCH ON
DEVELOPMENTS AT BOTH ENDS. IN THIS CONTEXT WE WERE RATHER
WRONG-FOOTED BY THE PRESS REPORTS ON 23 JANUARY OF A DTI GRANT
TO BRITISH FIRMS TOWARDS THE COST OF A FEASIBILITY STUDY.
2. THE SEQUENCE AT THIS END WAS THAT ABOUT SOME WEEKS AGO THE SBTC
TOLD THE SECRETARY FOR ECONOMIC SERVICES AND OTHER OFFICIALS IN
GENERAL TERMS THAT THE DTI WOULD LOOK FAVOURABLY AT AN APPLICATION
FROM BRITISH FIRMS FOR ASSISTANCE. BTC THEMSELVES HEARD NO MORE
UNTIL REPORTS ON 23 JANUARY IN THE MING PAO AND WAH KIU THAT DTI
HAD APPROVED A GRANT OF HK DOLLARS 4 MILLION TO FIVE BRITISH FIRMS FOR A FEASIBILITY STUDY. HOLLOWAY TELEPHONED DTI WHO SAID THAT
FORMALITIES WERE NOT QUITE COMPLETE BUT THAT IT APPEARED THAT
GORDON WU HAD JUMPED THE GUN WITH AN ANNOUNCEMENT.
3. THE TRADE COMMISSION THEN ISSUED THE FOLLOWING STATEMENT ON 23
JANUARY (HOLLOWAY READ THIS TO THE FINANCIAL SECRETARY IN ADVANCE):
**WE CAN CONFIRM DTI HAVE AGREED TO MAKE A GRANT TOWARDS THE COST
OF A FEASIBILITY STUDY. THE ACTUAL COST IS A MATTER OF COMMERCIAL
CONFIDENCE.
THIS IN NO WAY SEEKS TO PREJUDGE OR PREJUDICE THE HONG KONG GOVERNMENT'S OWN DECISION. IT IS A DEMONSTRATION OF SUPPORT FOR BRITISH COMPANIES WHO HOPE TO BE INVOLVED IN THE PROJECT IF IT
COMES ABOUT ''
4. WHILE THE TRADE COMMISSION STATEMENT HELPFULLY STRESSED THAT THE INITIATIVE REMAINED WITH HKG, WE SHOULD OBVIOUSLY HAVE BEEN MUCH BETTER PREPARED TO COORDINATE A LINE IF THERE HAD BEEN PROPER ADVANCE WARNING. SO FAR PRESS QUESTIONING HAS CONCENTRATED ON THE DEGREE TO WHICH HONG KONG'S FREEDOM OF ACTION HAS BEEN AFFECTED AND HOS NOT MADE TOO MUCH OF ANY POST 1997 ANGLE. BUT THAT MAY
FOLLOW.
CONFIDENTIAL