CONFIDENTIAL

Cathay Pacific/China Southern: Orders for Boeing 777

Aircraft

Line to Take (if raised)

- We accept that airlines make aircraft/engine choice best

suited to their needs;

-

We hope that China Southern's decision will be taken on

merit only, and commend Rolls-Royce engines and Airbus

aircraft.

Future British Consulate-General

Now that we have secured agreement in the Land Commission

for the Colvin House site we are pressing ahead with

planning and design.

Very glad that Swire Properties will be project managers for the building.

Chinese Investment in Hong Kong

- Interested in how this is going, given your own experience

with CITIC.

TIMABZ/2

CONFIDENTIAL

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