CONFIDENTIAL
IMMEDIATE
put to them a revised proposal based on some suggestions they
made. This would have the effect of ploughing back into the project revenue from land sales associated with the new airport railway. It would therefore cut borrowing and reduce the overall
cost of the project. The Chinese have not yet responded officially to these new proposals, although there have been some
rumblings in the press. If the financial issues can be tackled on their merits, I am confident that agreement could be reached
quickly. It should be clear from the Governor's visit to Peking
whether this will be possible.
10. I am grateful for your continuing support for our policy on Hong Kong, and Look forward to keeping in touch with you on
the subject. Ends.
11.
Washington, Ottawa and Canberra should substitute the
following introductory paragraph:
Begins: Our new Governor of Hong Kong, Chris Patten, will be making his first major policy speech to Hong Kong's Legislative Council on 7 October. He will have some important proposals to announce on Hong Kong's constitutional development up to 1997. I wanted to let you have in confidence an advance account of what he will be proposing and the background to it.
Ends.
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