To:

1.

Minister for Trade

2.

Secretary of State

From:

Richard Rogers

PEP1

Room 266

Ashdown House

215 6529

16 October 1991

dti

the department for Enterprise

CONFIDENTIAL

cc Sir Peter Gregson

Mr Roberts

Mr Stephens

ECGD

Mr Adams

PEP

Mr Wild

ECGD

Mr Casey

PEP2

Mr Worman

PEP3

Mr Vinall

PEP4

Mr Pentecost

ECGD

Mr Gallaher

PEP1

HONG KONG : PROJECTS

This paper gives a progress report on project activity in Hong Kong, where the pace of developments is accelerating following the agreement with the Chinese on the airport project. It is essentially for information only - no action is sought. But the paper sets out the implications of our current strategy for future Government decisions, most obviously in respect of ECGD cover; and it is important that these implications are fully recognised.

Background

The Airport Project

2.

The memorandum of understanding with the Chinese essentially delivered agreement that ten core airport projects should proceed, at an estimated total cost of around £7.5 billion. The ten core projects are helpfully summarised in the extract attached at Annex A. Two large contracts are likely to be placed in the coming months:

(a) The Lantau Fixed Crossing the very large bridge linking

the island airport site to the mainland; and

(b) The Airport Platform

very large scale reclamation work on the site of the airport itself.

Further ahead substantial contracts will be placed for the Western Harbour crossing, for the airport railway and for the construction of the airport itself and the specialist

equipment required.

Recycled Paner

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