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CONFIDENTIAL

MR MCLAREN ́S VISIT TO JAPAN, 28-31 OCTOBER 1990

HONG KONG

Points to make

PADS

HKB020/2

m

-

Grateful for Japan's continuing investment in and support

for Hong Kong. Continuing growth of Japanese investment an

important factor in promoting confidence.

-

Japanese

Hope/financial institutions will also invest in PADS project which is vital to Hong Kong's long-term future.

Clearly important to bring Chinese on side. We and Hong

Kong Government have been making every effort to convince China of merits of project. Encouraged by fact that Chinese

leadership have clearly acknowledged need for a new international airport in Hong Kong.

- Chinese experts are still studying detailed information

given to them by Hong Kong Government. Their main concern

is that HKSAR Government should not be encumbered with a

heavy debt burden in 1997. Hope that recent visit to Hong Kong by team of Chinese experts will have helped to convince Chinese thatproject is technically sound and financially

feasible.

- Pleased that an Anglo-Japanese consortium (Trafalgar House/Costains/Mitsui) will be bidding for Lantau fixed

crossing, which will be a major element of PADS. HMG is

giving full support to consortium. Very much hope this example of Anglo-Japanese cooperation will be a success.

CC1AAV/1

CONFIDENTIAL

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