From the Private Secretary

Dear frapher.

CONFIDENTIAL

(7 MON

10 DOWNING STREET

LONDON SWIA 2AA

HKB 182/3

HÙNG KONG AIRPORT PROJECT

0 4 DEC 1991

Mr Rickets HUD

PS/ word Caithers Si Jalis Dr. Zazre Mr Burns

iW Bone, ERD

2 December 1991

LANTAU FIXED CROSSING

CHINA SHAJIAO C POWER STATION PROJECT

166

FED

MN Sapone 3/12 A funesim.

Ра

M

13/2

165

The Prime Minister has seen your letter to me of 29 November and all the previous correspondence.

I cannot say that the Prime Minister welcomed having to deal with what he called "this squabble" at a time when he has many other more important issues to deal with.

The Prime Minister has decided that we should proceed as follows:

i. An indication can now be given by ECGD of willingness

to provide cover for the Lantau Fixed Crossing.

ii. This decision means in effect that the Lantau project

and the Shajiao C Power Station must be treated separately. The Prime Minister is not prepared to take a view as to whether the risk should be placed off- shore to Japan or Singapore. He will not rule on this unless it really is impossible for it to be sorted out interdepartmentally. He strongly hopes that it will

be.

I am copying this letter to Richard Gozney (Foreign and Commonwealth Office), Nicholas Holgate (HM Treasury) and Sonia Phippard (Cabinet Office).

چیا

Your

Sriphe

J.S. Wall

3/xü

Stephen Speed Esq

Department of Trade and Industry

CONFIDENTIAL

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