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Next Steps

7. Mr Wu said that the next step would be to launch more detailed

studies covering such areas as airport operation, the effect of a project on water flows in the harbour and the technical aspects of

land formation. He would then be ready to talk further to the Hong

Kong Government. At this stage he was looking for British

participation in the form of "software". But Britain would then be

very well-placed to provide the hardware as well: he saw the project

as essentially a trilateral one between the PRC, HK and the UK.

8. The presentation was largely mounted for the benefit of Mr Benjamin, the Under-Secretary at the DTI responsible for Projects and Export Policy. I am copying this minute to him in case he finds

it a helpful record. I propose to discuss with him what the next

steps should be on the part of HMG.

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CO Hum

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