*
dti
the department for Enterprise
CONFIDENTIAL AND PERSONAL
political commitment from the UK during the run up to 1997.
The Governor responded by noting our political difficulties
but added that he had his own which required contracts to be
allocated strictly on a value for money basis.
7.
I propose to monitor developments closely. It could well
be appropriate to take this issue up further with the
Governor; indeed, given her past interest in the project, I
believe the Prime Minister might well wish to intervene. The
best timing for any further interventions will be difficult to
judge. It will be counter-productive to convey repeatedly the
same message well in advance of the award of contracts;
conversely, it would of course be too late if a firm decision
had been made to award too many major contracts elsewhere.
You are yourself considering a visit to Hong Kong early next year, and this could be very timely in relation to the airport
project and the fixed link contract in particular.
Meanwhile,
I have asked officials to keep me well informed about
developments.
8.
Both the Governor and the Chief Secretary raised with me
the question of ECGD cover. It was emphasised that for key
CONFIDENTIAL AND PERSONAL
Recycled