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30 October 1991

Tel:

071-270-2673

Fax:

071-270-3443

R J Watts Esq

HM Treasury

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72 Furtes Had

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Caliper for commità / clearing pls. (ASAP)

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× 2673

probably amounts to only a formality: HIT

will say No cd Ministes will have to be

Ý HONG KONG: LANTAN FIXED CROSSING

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inuched.

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Mr Stace

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41

Yes Kplease

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agree. 30/10

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1. Please refer to Nancy Cowie's (ECGD) letter of 28 October in X which she seeks authority to give without commitment indication to Cementation Ltd in respect of their bid for the Lantan Fixed Crossing Contract.

2.

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We support strongly ECGD's wish to indicate on this

project. We have argued before that HMG have a strong

political commitment to Hong Kong and that care is needed to

avoid undermining confidence in Hong Kong's future. We have invested a great deal of political credibility in securing the airport MOU with the Chinese. That credibility would be lost and confidence seriously undermined if the first company to

an a part approach ECGD for an indication of support on a PADS related

project was rejected. I realise that the issue of ECGD cover

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ayport

for PADS is one in which the Prime Minister has sought advice y but I do not think that a decision on Lantaй should be delayed

Keneal

pending that (advice. I note that, although in excess of the "Amber Zone" review points, the contract can be easily accommodated both within ECGD's Market Exposure Control and

this year's Amber Zone budget. I hope, therefore, that you

is X will agree to an indication being given in their case.

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55/10

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