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SPILL OVER THAT MUCH GREATER.
6. MY INITIAL VIEW IS THAT IT MAY WELL NOT BE PRACTICABLE TO PRESS ON WITH THE FULL PROJECT IN THE FACE OF CONTINUING CHINESE HOSTILITY. WE ARE THEREFORE LOOKING AT THE POSSIBILITY OF A SCALED DOWN VERSION. WE ARE ALSO WORKING ON A VARIANT OF THIS, WHICH WOULD INVOLVE DIVIDING THE PROJECT INTO A FIRST STAGE WHICH WOULD BE COMPLETED BEFORE 1997 WITH OUR OWN RESOURCES, LEAVING THE RESERVES IN A VERY HEALTHY STATE, AND A SECOND STAGE WHICH WE WOULD AGREE WITH THE CHINESE SOMETIME BEFORE 1997. THIS SECOND STAGE MIGHT INCLUDE, FOR EXAMPLE, THE AIRPORT RAILWAY, SUBSTANTIAL ELEMENTS OF THE PORT AND THE SECOND RUNWAY. I DO NOT YET KNOW IF THIS WILL BE A FEASIBLE OPTION. NOR IF SUCH AN ASSESSMENT CAN BE COMPLETED IN THE SHORT TIME AVAILABLE BEFORE MY VISIT TO PEKING. BUT IF IT IS, AND CAN, I MAY BE WORTH FLOATING. IT WILL BE ATTRACTIVE IN AS MUCH AS IT GIVES THE CHINESE SOME FACE WHILST PROTECTING OUR AUTHORITY TO MAKE DECISIONS IN THE PERIOD OF OUR ADMINISTRATION.
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7 I AGREE THAT A CONTINUING MAJOR ROW WITH THE CHINESE OVER THE AIRPORT WOULD RUN THE RISK OF JEOPARDISING CO-OPERATION ACROSS THE BOARD. BUT IT IS CLEAR THAT WHAT THE CHINESE ARE PLAYING FOR IS INVOLVEMENT IN A MUCH WIDER RANGE OF MATTERS THAN THE AIRPORT ALONE. OUR TACTICS ON HOW TO PLAY DISCUSSIONS ON THE AIRPORT NEED TO RECOGNISE THIS. LOCAL OPINION WOULD NO DOUBT RECOIL FROM THE PROSPECT OF A CONTINUING ROW WITH THE CHINESE. BUT THERE IS EQUAL CONCERN ABOUT THE PROSPECT OF CHINESE INVOLVEMENT IN THE ADMINISTRATION OF HONG KONG BEFORE 1997. LIKE MOST OF US, HONG KONG PEOPLE WOULD LIKE TO HAVE THE BEST OF BOTH WORLDS.
WILSON
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