CONFIDENTIAL
033642
MDHIA 19
ARE INDEED A MATTER PURELY FOR THE SARG IN FUTURE. IN THIS
RESPECT THEY APPEAR TO HAVE IN MIND SOME OF THEIR OWN FAILED MAINLAND PROJECTS. TOO OFTEN THE CENTRAL GOVERNMENT HAS BEEN CALLED UPON TO BAIL OUT THE PROVINCES IN SUCH CASES.
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4 AT THE END OF THE DAY, WE MUST ALSO BEAR IN MIND THE DIRECT POWER WHICH CHINA HAS OVER TH PADS PROJECTS, THROUGH THE LAND COMMISSION, AS WELL AS THE INDIRECT POWER OF WORRYING INTERNATIONAL INVESTORS. WE THEREFORE HAVE SOME WAY TO GO, AND SOME NOT INCONSIDERABLE DIFFICULTIES TO OVERCOME, BEFORE WE OBTAIN A SMILE FROM PEKING. BUT MY JUDGEMENT IS, THAT IF WE CAN SATISFY THEM ON FINANCING, WE WILL EVENTUALLY SUCCEED.
5. THE CHINESE TEAM WILL NOW REPORT TO THE STATE COUNCIL. WE ARE
WORKING ON A REPLY TO THE FOUR POINTS RAISED BY LUO IN THE FINAL REVIEW SESSION, AND WILL PASS IT TO NCNA (COPYING TO YOU, PEKING AND UKREP) AS SOON AS POSSIBLE. WE INTEND TO PROBE NCNA ABOUT
WHEN THE CHINESE MIGHT BE READY FOR A SECOND ROUND. IT MIGHT BE BEST TO TRY FOR A SECOND ROUND IN EARLY JANUARY, BEFORE MY VISIT (BY WHEN WE WOULD HOPE TO BE IN A POSITION TO HAVE DECIDED ON THE WAY FORWARD ON THE AIRPORT RAILWAY AND TO KNOW MORE PRECISELY WHETHER THE AIRPORT CAN IN FACT BE OPENED IN 1997 OR WHETHER MORE FLEXIBILITY WILL NEED TO BE BUILT INTO THE PROGRAMME). WE WOULD EXPECT THE CHINESE TO ASK FOR THE NEXT ROUND TO BE HELD IN PEKING. WE WOULD HAVE NO OBJECTIONS TO THAT, ALTHOUGH WE WOULD HOPE TO RESTRICT IT TO ABOUT 3 DAYS, GIVEN THE NEED TO SEND SENIOR PEOPLE TO MAKE THE RIGHT IMPACT AND THE MANY OTHER DEMANDS
ON THE TIME OF THOSE CONCERNED.
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6. IN THE MEANTIME, I THINK IT WOULD BE RIGHT TO ENSURE THAT THE CHINESE KNOW IN ADVANCE WHAT OUR TIMETABLE IS OF IMPORTANT
MILESTONES OVER THE NEXT FEW MONTHS (IE
DECISIONS/ANNOUNCEMENTS/CALLS FOR TENDERS ON VARIOUS PARTS OF THE PADS PROJECTS). THE POLITICAL ADVISER WILL, SUBJECT TO ANY VIEWS YOU MAY HAVE, BRIEF NCNA ON THESE ON 7 NOVEMBER (COPY OF A SPEAKING NOTE AND LISTS OF MILESTONES ARE BEING FAXED TO YOU, PEKING AND UKREP). WE WILL STRESS THAT A NUMBER OF MAJOR DECISIONS, EG ON THE AIRPORT RAILWAY, AND THE PHASING OF THE CONSTRUCTION OF THE TWO RUNWAYS, AND THE OVERALL TIMETABLE, WILL BE MATTERS THAT WE WOULD BE HAPPY TO DISCUSS WITH THEM AT THE NEXT ROUND. BECAUSE OF THIS BRIEFING, WE WILL SLIP TO 16 NOVEMBER A PRE-TENDERING EXERCISE FOR THE LANTAU BRIDGE WHICH WOULD OTHERWISE HAVE BEEN DUE ON 9 NOVEMBER.
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CONFIDENTIAL