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GRS 500
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FM BTC HONG KONG
TO IMMEDIATE DTI
TELNO OTTER 19
OF 260935Z JANUARY 87
INFO IMMEDIATE FCO
INFO PRIORITY PEKING
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HKK
RECKOV
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FOR WHEELER PEP
POEX
MY OTTER 18 : PROPOSED ROAD/AIRPORT-DEVELOPMENT
WE HAVE NOW BEEN ABLE TO REVIEW THE WEEKEND PRESS. THE TONE HAS IMPROVED BUT THERE REMAINS A STRONG INFERENCE THAT THE BRITISH GOVERNMENT HAS GIVEN ITS BLESSING TO THE PROPOSED PROJECT AND THAT NOW THE HONG KONG GOVERNMENT WILL BE PRESSURED INTO APPROVING IT. MOST OF THE NEWSPAPERS USED OUR STATEMENT THAT THE DECISION TO HELP WITH THE FEASIBILITY STUDIES IN NO WAY SOUGHT TO PREJUDGE OR PREJUDICE THE HONG KONG GOVERNMENT'S OWN DECISION. UNFORTUNATELY
THERE WERE ALSO SOME MISQUOTES.
2.
RTHK (THE GOVERNMENT RADIO STATION) TOOK THE LEAD IN SUGGESTING A ROW BETWEEN THE UK AND HONG KONG GOVERNMENTS. IN AN INTERVIEW WITH RTHK THE FINANCIAL SECRETARY SAID IT WAS STILL FOR THE HONG KONG GOVERNMENT TO MAKE A DECISION ON THE PROJECT. HE SUGGESTED THAT THE DTI ASSISTANCE WAS INTENDED TO BE DEPENDENT ON THAT. HE WAS QUOTED IN THE PRESS AS SAYING THAT THE HONG KONG GOVERNMENT WOULD NOT RUSH INTO A DECISION: KAI TAK AIRPORT WOULD BE ABLE TO COPE FOR MANY YEARS TO COME. THE SENIOR MEMBER OF THE LEGISLATIVE COUNCIL, SIR S Y CHUNG, WAS REPORTED TO HAVE SAID THE SAME THING.
3. I THINK THE STORY MAY BE BLOWING ITSELF OUT AND WE ARE DECLINING FURTHER COMMENT. HOWEVER IT WOULD BE UNFORTUNATE IF THE HONG KONG GOVERNMENT WERE TO RETAIN ANY SUSPICION THAT WE WERE TRYING TO APPLY PRESSURE (THAT COULD BE COUNTER-PRODUCTIVE) AND IT WILL BE NECESSARY FOR ME TO WRITE TO THE FINANCIAL SECRETARY TO SET THE RECORD STRAIGHT. SUBJECT TO YOUR VIEW, I WOULD PROPOSE TO DO SO ON THE FOLLOWING LINES:
QUOTE WE SPOKE ON FRIDAY EVENING ABOUT THE NEWSPAPER REPORT FROM LONDON THAT THE DTI HAD AGREED TO HELP A NUMBER OF BRITISH FIRMS TO CARRY OUT FEASIBILITY STUDIES IN CONNECTION WITH THE PROPOSED AIRPORT/ROAD PROJECT. IN TALKING TO THE PRESS THE TRADE COMMISSION
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