Redacted Under FOI Exemption Sec 27(1)(a)(c)(d)
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4. The Chinese accept that Hong Kong needs a new airport if it is to maintain its position as a leading financial and economic centre in the region. But they
are still concerned about the cost of the project and its
financial implications for the post-1997 Government.
I attach a note which
summarises the position at the end of the most recent
talks between the Chinese and the Governor of Hong Kong.
5. My visit to Peking next months represents the point
at which we shall have maximum leverage over the Chinese
on this issue. They have already made clear that they
want to do a deal with HMG rather than the Hong Kong
Government. Once my visit is over, the chances of doing a sensible deal will be significantly diminished.
Moreover we cannot afford any further delay if the airport is to be substantially complete by 1 July 1997.
Invitations to tender for the Lantau Bridge, the next major part of the airport project, will need to go out
very shortly if that timetable is to be met.
6.
Experience shows that in order to get what we want
from the Chinese, we must make every effort to tie up the most important details of an agreement before my visit, if at all possible (or failing that, through parallel talks which could take place during it). I have
therefore authorised the Governor to send a message to
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/Lu Ping,