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P
(a)
(b)
(c)
Specific issues qua Swires which have annoyed Peking have been:-
Public support for the Governor by the H.K. Association of which Swires are leading members.
Peter Sutch's letter to the BPF of November 6th (copy attached) of which Peking are aware and which they have taken as positive evidence of Swire opposition to China's line.
Peter Sutch's comments in Vancouver about the prospects, subject to China's clearance, of private money being available for the new airport, which were twisted by the press into a direct criticism by Swires of Peking's attitude towards CLK.
(d) Howard Young's (LegCo, and Swire employee) vote cast to help the
H.K. Government over the airport platform problem, which effectively undermined the Peking line. They had expected him to vote with his CRC colleagues and believe he was deterred from doing so by Swires.
7.
Peking's pressures on Swire have to date not been formal. They have, however, been widespread, directly or indirectly from a high level e.g. Lu Ping, Zhou Nan, aimed mainly at our senior H.K. Chinese staff. The theme is that Swires have lost, or are about to lose, their high status in Peking; and that Swires must realise that, if political convergence dies, then commercial convergence (e.g. as demonstrated by the PRC shareholdings in CPA, and assurances over traffic rights) will similarly no longer be possible. Previous understandings reached between Swires and the P.R.C. leadership will no longer apply.
We are expecting further pressure.
Encs.
A.C.S. 22.12.92.
As