SECRET
SECRET
FM HONG KONG
TO IMMEDIATE FCO
TELNO 799
OF 141018Z MARCH 91
RECEIVE
HKE 182 12
DESK
INDEA
AND TO IMMEDIATE THE HAGUE
INFO IMMEDIATE PEKING, UKREP JLG HONG KONG
241
163710
MDHIAN 8025
TOP COPY Q DIST?
PERSONAL FOR BURNS, AUSS FROM ACTING GOVERNOR
FOR THE HAGUE: PERSONAL FOR GOVERNOR OF HONG KONG VISITING FOR PEKING: PERSONAL FOR AMBASSADOR
FOR UKREP JLG HONG KONG: PERSONAL FOR GALSWORTHY
234
YRTELNO 71 TO THE HAGUE: PADS: THE WAY FORWARD.
1. WE ARE CONTENT WITH THE FORMULA IN PARA 4 OF YOUR TUR WHICH LEAVES ROOM FOR MANOEUVRE. WE HAVE NO ADDITIONAL COMMENTS (REF. PARA 5 OF TELNO 099 TO YOU FROM THE HAGUE). SUBJECT TO ANY THAT YOU OR PEKING MAY HAVE, WE WILL PREPARE FOR DISCUSSION ON THE GOVERNOR'S RETURN A NEW DRAFT BASED UPON THAT IN FCO TELNO 466 BUT WITH THE FOLLOWING PARAGRAPHS 8 AND 9.
'8. NEVERTHELESS, IN RECOGNITION OF YOUR CONCERN, I WOULD BE PREPARED TO DISCUSS A FIGURE WHICH WE WOULD AIM TO HAVE IN THE FISCAL RESERVES IN 1997.
9. IF WE ARE TO REACH AGREEMENT ON A FIGURE WHICH WE WOULD AIM TO HAVE IN THE FISCAL RESERVES IN 1997, I WOULD NEED A CLEAR UNDERSTANDING THAT THE OTHER FINANCIAL RESTRICTIONS WHICH THE CHINESE SIDE HAS SUGGESTED ARE PUT ON ONE SIDE. IT WOULD ALSO BE IMPORTANT FOR US THAT THE CHINESE SIDE SHOULD INDICATE CLEARLY ITS SUPPORT FOR THE SUCCESSFUL COMPLETION AS EARLY AS POSSIBLE OF THE PROJECT TO BUILD THE NEW AIRPORT AT CHEK LAP KOK AND THAT THE TASK OF CARRYING OUT THE PROJECT, IN THE PERIOD UP TO 1997 SHOULD BE UNDER THE EFFECTIVE CONTROL OF THE HK GOVERNMENT. I WOULD FURTHER ASSUME THAT, AS AN INDICATION OF CHINESE SUPPORT FOR THE PROJECT, CHINESE CONSTRUCTION FIRMS WOULD COMPETE IN THE NORMAL WAY FOR PROJECTS CONNECTED WITH THE AIRPORT, AND THAT IF FOR INSTANCE THERE WERE ANY SYNDICATED LOANS, THE BANK OF CHINA IS DEMONSTRATING SUPPORT BY PLAYING A PART.
FORD