CONFIDENTIAL

FM FCO

TO IMMEDIATE HONG KONG

TELNO 14

OF 04163OZ JANUARY 91

CONFIDENTIAL

нив 182 13

Q DIS

063333 MDHOAN 4754

PERSONAL FOR

QVERNOR FROM PAUL, HKD

GOVERNO

YOUR TELNO 14: PADS

1.

WE WERE MOST GRATEFUL FOR THE INFORMATION CONTAINED IN TUR.

2. IT WOULD ALSO BE VERY HELPFUL TO KNOW WHERE MATTERS STAND ON THE SHAPE AND PHASING OF THE OVERALL PROJECT. ON THE FUTURE OF THE RAIL LINK, FOR EXAMPLE, YOU WILL RECALL THAT DURING YOUR RECENT VISIT TO LONDON, YOU DISCUSSED THE POSSIBILITY THAT THE CONSTRUCTION OF THE RAILWAY MIGHT BE POSTPONED, AND THAT IF IT WERE, THIS COULD BE USED TO HELP PERSUADE THE CHINESE THAT THE SCOPE OF THE OVERALL PROJECT HAD BEEN SCALED DOWN TO MORE MANAGEABLE PROPORTIONS. WE HAVE HOWEVER LEARNED FROM COMMERCIAL SOURCES THAT OPTIONS OF A MORE RADICAL KIND, INCLUDING A 15 YEAR POSTPONEMENT OF THE RAIL LINK, OR EVEN ITS ABANDONMENT, MAY BE UNDER CONSIDERATION.

3

WE WOULD BE GRATEFUL FOR A SITREP ON YOUR CURRENT THINKING ON THIS AND OTHER ASPECTS OF THE PROJECT, SO THAT WE CAN BRIEF LORD CAITHNESS ON HIS RETURN FROM LEAVE ON 7 JANUARY. AS YOU WILL APPRECIATE, THE MINISTER WILL BE KEEN TO HAVE AN UP-TO-DATE ACCOUNT OF YOUR PLANS. GRATEFUL THEREFORE FOR A REPLY, DESKBY 07093OZ.

HURD

YYYY

MAIN

74

.PADS

LIMITED

HKD

DISTRIBUTION

75

PUSD

RAD

PS/LORD CAITHNESS

PAGE

1

CONFIDENTIAL

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