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CONFIDENTIAL
FM HONG KONG
TO IMMEDIATE FCO
TELNO 114
OF 111215Z JANUARY 91
CONFIDENTIAL
HKB 182/2
ра
INFO IMMEDIATE PEKING, UKREP JLG HONG KONG
105422 MDHIAN 7885
TOP COPY Q DIST?
PADS : DISCLOSURES OF FINANCIAL INFORMATION
1. AS PART OF THE BACKGROUND TO THE CURRENT TALKS, YOU SHOULD KNOW THAT WAH KIU YAT PO HAS RECENTLY CARRIED TWO ARTICLES, CONTAINING CONFIDENTIAL INFORMATION HANDED TO THE CHINESE AT THE FIRST ROUND OF PADS EXPERT TALKS IN OCTOBER 1990. ENQUIRIES WITH THE PAPER INDICATE THAT THE INFORMATION WAS LEAKED TO THEM BY THE CHINESE.
2. THE ARTICLES APPEARED ON 27TH DECEMBER, 1990 AND 8TH JANUARY. THEY CONTAIN DETAILS OF SUCH ACCURACY THAT THEY MUST HAVE SEEN, AND HAD TIME TO ANALYSE, AT LEAST PARTS OF THE QUOTE PRESENTATION OF THE FINANCIAL AND ECONOMIC ASPECTS OF THE AIRPORT CORE PROGRAMME UNQUOTE. THIS WAS THE SECRET DOCUMENT (NOT TOP SECRET AS MENTIONED IN ONE OF THE ARTICLES) HANDED TO THE CHINESE AT THE
FIRST ROUND OF EXPERT TALKS.
COMMENT
3. IT IS INTERESTING THAT THIS NEWSPAPER SHOULD HAVE RECEIVED THE DOCUMENT SINCE IT IS NOT NORMALLY PRO-CHINA. WE HAVE SPOKEN TO THEM AND THEY CONFIRM THAT THEIR SOURCE WAS ON THE CHINESE SIDE.
4. THIS IS A POTENTIALLY DAMAGING DISCLOSURE IN TERMS OF PUBLIC SUPPORT FOR PADS IN HONG KONG. OMELCO MEMBERS WILL ANGRY THAT THE CHINESE RECEIVED THIS DOCUMENT AND THEY DID NOT AS LU PING HAS OF COURSE ALREADY SAID. THE FACT THAT ONLY 11.3 PER CENT OF THE AIRPORT CORE PROGRAMME WILL BE PRIVATELY FUNDED ACCORDING TO THE PRESENTATION MAY BE MISINTERPRETED TO MEAN THAT ONLY THAT PERCENTAGE OF THE WHOLE AIRPORT WILL HAVE PRIVATE SECTOR
PARTICIPATION.
5. THE TIMING OF THIS LEAK JUST BEFORE THE SECOND ROUND OF TALKS IS SURELY NO ACCIDENT AND CAN NOW BE SEEN AS PART OF THE STRATEGY TO PUT MAXIMUM PRESSURE ON US.
WILSON
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