3. This seems to throw us back to Mr.Paskin's conclusions in the second and third paragraphs of his minute; and, of course, their financial and political implications are still such as to warrant consultation with the Foreign Office and Treasury. On the other hand, there does not seem to me to be the same urgency about such an initiative now as there was then. The two biggest development schemes for the New Territories, Tai Lam Chung and the Deep Bay Airport, were then only under consideration, but have now been approved, at least in principle; it seems unlikely that any schemes at all comparable will come up in the foreseeable future. C.D. & W. schemes such as road development and irrigation with which we are now dealing (and which have also been approved in principle) are on a amenaly smaller scale and should pay for themselves directly or indirectly within the period of the interim policy of standing firm. I feel, therefore, that we have no real peg, at the moment, on which to hang such an approach, and that it will be sufficient to await the necessity which would arise when further development schemes come up.
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