chex.jp/jh/29

NCELLOR OF

THE

EXCHEQUER

Mr. Batil HAD of Ps/Lord

Ps/ Lord Caithness Si Coles

м, вито

Treasury Chambers, Parliament Street, SWIP 3AG

071-270 3000

Arbor, еле

(77)

Stephen Wall Req LVO Private Secretary to the

Prime Minister

10 Downing Street LONDON

SW1A 2AA

6 June 1991

I Stone

m

нив 182 13

Mr Ferifi

Pa m

Dear Staflen,

HONG KONG: HMG INVOLVEMENT IN AIRPORT FUNDING

73

The Chancellor has seen Simon Gass's letter of 31 May to you about the airport project.

The Chancellor agrees very strongly that ATP funding would be most inappropriate for this project. The Chancellor has also noted the Foreign Secretary's comment that ECGD cover will be needed if British companies win large projects in the airport scheme, While the Chancellor agrees that a detailed discussion of this issue is unnecessary at present, it is important to note that ECGD already has exposure of £2.3 billion to Hong Kong, which is several times greater than the PMS prudent figure. We would need to be very cautious about adding further to this; and any addition would certainly need to be contained within the Amber Zone Budget for the year in question.

I

am

copying

this

letter

to

Martin Stanley (DTI), (Cabinet Office).

Suma Chakrabarti (ODA)

Simon Gass (FCO), and Sonia Phippard

Yours,

Jay

JEREMY HEYWOOD

Principal Private Secretary

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