CONFIDENTIAL
la
HUB 182 12
124613
MDHOAN 5748
67
CONFIDENTIAL
FM FCO
TO IMMEDIATE HONG KONG
TELNO 96
OF 16180OZ JAN 91
INFO IMMEDIATE PEKING, UKREP JLG HONG KONG
48
160
(57
TOP COPY Q DIST?
63
PEKING TELNO 39 AND 49 AND YOUR TELNO 152 AND 16: PADS: THE WAY FORWARD
ら?
1. WE WERE GRATEFUL FOR YOUR THOUGHTS AND THOSE OF SIR A DONALD ON THE WAY FORWARD. WE HAVE ALSO RECEIVED YOUR TELNOS 166-170 SETTING OUT THE LINE YOU PROPOSE TO TAKE ON PADS AND OTHER ISSUES DURING YOUR FORTHCOMING VISIT TO PEKING. WE WILL NEED TO CONSULT MINISTERS ON THE KEY POINTS INCLUDED IN THESE LATTER TELEGRAMS. BEFORE DOING SO IT WOULD BE HELPFUL TO HAVE YOUR FURTHER VIEWS ON THE OPTIONS NOW AVAILABLE TO US ON THE AIRPORT.
2. AS SEEN FROM HERE, THE MAIN OPTIONS ARE AS FOLLOWS:
(A) TO CONTINUE WITH THE PRESENT TACTICS I.E. PRESSING AHEAD WITH THE PROJECT WHILE PATIENTLY EXPLAINING TO THE CHINESE THE THINKING BEHIND IT, PROVIDING THEM WITH AS MUCH INFORMATION AS POSSIBLE ON TECHNICAL AND FINANCIAL ASPECTS, AND EMPHASISING THE DAMAGE THAT WILL BE DONE TO THE AUTHORITY OF THE HONG KONG GOVERNMENT IF PEKING WERE SEEN LOCALLY TO HAVE A VETO OVER MAJOR DECISIONS IN HONG KONG BEFORE 1997.
(B) TO OFFER THE CHINESE THE PROSPECT OF A TEMPORARY SUSPENSION OF WORK ON THE PROJECT TO ENABLE THE TWO SIDES TO REACH A CONSENSUS.
(C) A HALF-WAY HOUSE BETWEEN (A) AND (B) INVOLVING A SLOW DOWN (BUT NOT TOTAL SUSPENSION) OF WORK: AND THE PRESENTATION TO THE CHINESE OF A PACKAGE OF CONCESSIONS DESIGNED TO DEMONSTRATE THAT THE PROJECT HAS BEEN REDUCED IN SCALE AND MADE LESS EXPENSIVE TO MEET THEIR CONCERNS.
3. THE DISADVANTAGE OF OPTION (A) IS THAT WE HAVE PURSUED IT PATIENTLY OVER MANY MONTHS BUT WITHOUT SUCCESS. IF WE ARE TO BELIEVE WHAT THE CHINESE ARE NOW SAYING YOUR FORTHCOMING VISIT MAY BE THE LAST OPPORTUNITY TO ENGAGE THEM IN FURTHER DETAILED DISCUSSION ON THIS BASIS. THE QUESTION WOULD THEN ARISE AS TO
1
PAGE
CONFIDENTIAL