ISTULJIL
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EFERRED LORD CAITHNESS FOR DIST ADVICE REF TEL SUGGESTED NMJAN 3093
HMLNAN 8409
ONFIDENTIAL
D 051115Z FCOLN
M HOK! TO FCOLN 50955% C
RS 556
ONFIDENTIAL
OMMERCIAL IN CONFIDENCE ỵ HONG KONG
O DESKBY 051115ZF CO ELNO 2949
F 050955Z OCTOBER 90
NFO PRIORITY PEKING, UKREP JLG HONG KONG
ERSONAL FOR LORD CAITHNESS FROM GOVERNOR EKING PERSONAL FOR AMBASSADOR
KREP JLG PERSONAL FOR GALSWORTHY
CO TELNO 1849: PADS:
LANTAU FIXED CROSSING
I AM SORRY YOU FEEL THAT WE DID NOT BRING OUT CLEARLY NOUGH THE FACT THAT WE WERE SCHEDULED TO MAKE AN ANNOUNCEMENT ODAY ON TENDERING FOR THE LANTAU FIXED CROSSING. THE REASON WAS, SUSPECT, THAT IT HAS BEEN PUBLIC KNOWLEDGE FOR SUCH A LONG TIME HAT THOSE BRIEFING MUST HAVE ASSUMED THAT YOU AND THE TEAM WITH OU WERE AWARE OF IT. ALL THOSE INTERESTED IN THE BIDDING, NCLUDING TRAFALGAR HOUSE, HAD OF COURSE KNOWN OF OUR PLANS FOR OME TIME. SO, NATURALLY, HAD THE SENIOR BRITISH TRADE OMMISSIONER.
THE REASON WHY THERE WAS NO MENTION DURING YOUR VISIT ABOUT HE POSSIBILITY OF A CHANGE FROM A BOT TO A DESIGN-AND-CONSTRUCT PPROACH WAS THAT THE VIEW OF THOSE INVOLVED IN THE DMINISTRATION AT THAT TIME WAS THAT WE SHOULD GO FOR A BOT PPROACH. THE DECISION TO CHANGE TO DESIGN-AND-CONSTRUCT WAS ADE ONLY AT EXCO ON 2 OCTOBER AFTER A LONG DISCUSSION IN WHICH HOSE WITH BUSINESS EXPERIENCE PLAYED THE MAJOR ROLE. ALTHOUGH HE DECISION DID NOT FOLLOW THE ORIGINAL RECOMMENDATION IT EFLECTED THE UNANIMOUS VIEW OF THE COUNCIL AND WAS, I BELIEVE, HE RIGHT WAY FORWARD IN ALL THE CIRCUMSTANCES. THIS INCIDENTALLY S ALSO THE VIEW OF OUR FINANCIAL ADVISERS. THIS INCIDENTALLY IS ALSO THE VIEW OF OUR FINANCIAL ADVISERS. I WAS INTERESTED TO FIND
HAT THE SENIOR BRITISH TRADE COMMISSIONER, WHOM I BRIEFED ESTERDAY, REACTED SIMILARLY.
P
I ENTIRELY TAKE THE POINT ABOUT THE EFFECT THAT OUR ANNOUNCEMENT TODAY MAY HAVE ON THE CHINESE. THIS IS OF COURSE SOMETHING THAT WE HAVE CONSIDERED CAREFULLY. I WISH CIRCUMSTANCES HAD BEEN SUCH THAT WE DID NOT HAVE TO FACE THE DILEMMA. AS IT
AS, IT HAD TO BE A QUESTION OF WEIGHING THE ADVANTAGES AND ISADVANTAGES OF THE TWO POSSIBLE OPTIONS. THE CLEAR VIEW FROM MY DVISERS, BOTH OFFICIAL AND IN EXCO, WAS THAT, IN LIGHT OF THE PUBLIC COMMITMENT TO AN ANNOUNCEMENT TODAY ON TENDERING, THE DISADVANTAGES OF NOT PROCEEDING, AND THE PUBLIC PERCEPTION THAT HIS WAS BECAUSE OF CHINESE PRESSURE, HAD TO BE GIVEN THE EDGE OVER THE RISKS OF A HOSTILE CHINESE RESPONSE. WE HAVE TAKEN CARE
O TRY TO MAKE THE SITUATION AS CLEAR, AND PALATABLE, TO THE CHINESE AS POSSIBLE. THUS WE HAVE EXPLAINED THAT WE HAVE FOR SOME
IME, AS THEY WILL KNOW, BEEN PUBLICLY COMMITTED TO THIS DATE. LSO THAT THE CHANGE OF APPROACH MEANS THAT, INSTEAD OF CALLING FOR TENDERS AND PRODUCING ALL THE DOCUMENTATION TODAY, WE WILL JOT NOW BE CALLING FOR TENDERS UNTIL JANUARY. THERE IS THUS MUCH