RESTRICTED
HKB
182/3
From: R O Miles
Date: 2 August 1991
CC;
FCO PS Secretary of State
PS Lord Caithness
PS PUS
Sir John Coles
Mr Burns
Head of Hong Kong Department
DTI PS Secretary of State
PS Minister for Trade
Mr Anisfeld
PS PUS
Mr Roberts
Mr Adams
Mr Meadway Mr Love
Mr Bayne
Hong Kong: Port and Airport Development Scheme (PADS)
This is probably the biggest opportunity currently open to British business. It is politically complex, and the political risks have been heightend by the forthcoming visit of the Prime Minister to Peking following the recent agreement with China. I took advantage of the Heads of Missions Conference in Hong Kong to discuss it with Mr Burns and Mr Adams, who lead on it in the FCO and DTI respectively, and also with Mr Heap and Sir Robin McLaren.
The main elements are well known:
Enormous scale (about £10 billion); the major participating companies will be seeded players at world level for years to come.
Generally poor UK performance in the Hong Kong market (though somewhat better in project work).
Refusal of the Hong Kong Government to favour British companies; at best a level playing field.
Question mark over large increase required in ECGD cover for Hong Kong.
RESTRICTED
(83