CONFIDENTIAL
FM FCO
TO IMMEDIATE HONG KONG
TELNO 2301
OF 3010OOZ NOVEMBER 90
CONFIDENTIAL
TOP COPY Q DIST?
INFO IMMEDIATE PEKING, UKREP JLG HONG KONG
222
Pa
292
151366
MDHOAN 2707
нис 182 12
PERSONAL FOR GOVERNOR FROM PAUL, HKD
YOUR TELNO 3223: PADS: THE WAY FORWARD
1. WE WERE MOST GRATEFUL FOR THIS DETAILED INDICATION OF YOUR THINKING ON THE WAY FORWARD WITH THE CHINESE. WE AGREE THAT MODIFIC- ATIONS TO PRESENT PLANS MIGHT ENABLE US TO SATISFY THE CHINESE
WISH FOR CONSULTATION AND THUS TO GAIN THEIR SUPPORT. WE ALSO AGREE THAT IN THE MEANTIME WE SHOULD TRY TO MOVE FORWARD IN AS NON-PROVOCATIVE A WAY AS POSSIBLE.
2. YOU MENTION THAT IT MAY BECOME NECESSARY TO BUILD SOME FLEXIBILITY INTO THE AIRPORT PROGRAMME AND THAT THE WHOLE PROGRAMME MAY HAVE TO SLIP BEYOND 1997. WE AGREE THAT IF THERE IS ANY SLIPPAGE WE SHOULD CERTAINLY TRY TO MAKE A VIRTUE OF NECESSITY AS FAR AS THE CHINESE ARE CONCERNED.
3.
WE WERE INTERESTED IN YOUR ASSESSMENT OF THE CHINESE CAPABILITY TO CAUSE TROUBLE. PUBLIC SPOILING TACTICS WOULD OBVIOUSLY BE VERY DAMAGING TO CONFIDENCE GENERALLY AS WELL AS FRIGHTENING OFF INTERNATIONAL INVESTORS. BUT, AS YOU POINT OUT, THE CHINESE COULD ALSO GAIN A STRANGLEHOLD OVER THE PROJECT THROUGH THE LAND COMMISSION.
4. I AM SURE THAT MINISTERS WILL WANT TO DISCUSS ALL THIS DURING YOUR VISIT HERE NEXT WEEK. BUT I DOUBT IF THERE WILL BE TIME TO GO INTO THE FINANCIAL ARRANGEMENTS IN ANY GREAT DETAIL. IN ANY CASE IT MIGHT BE BETTER TO DO SO ONCE THE RESULTS OF THE FINANCIAL CONSULTANCY ARE AVAILABLE. IT THEREFORE OCCURS TO ME THAT IT MIGHT BE HELPFUL IF ONE OR TWO OF YOUR EXPERTS WERE ABLE TO COME TO LONDON TO BRIEF MINISTERS ON THE VARIOUS OPTIONS ONCE THE DETAILED FINANCIAL CONSULTANCY WORK HAS BEEN COMPLETED BUT BEFORE THE NEXT ROUND OF TALKS WITH THE CHINESE. AS YOU
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CONFIDENTIAL
Redacted under FOI exemption 27(1)'