Notes :

(i) It is important to distinguish between indications and

commitments; for example, the Lantau fixed crossing will require an indication of cover this autumn. but commitment is unlikely to arise until the 1992/3 financial year.

(ii) We must seek to avoid a series of Whitehall arguments

leading to what will at worst be seen as a series of reluctant and last-minute decisions. This will be commercially damaging if the position becomes clear in Hong Kong; it is also likely to be perceived as under- cutting HMG's commitment to Hong Kong - which is likely in turn to have an adverse effect on confidence.

PEP1/DTI

September 1991

Page 210Page 211

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