Dd.033009 Gp.863
Gp.863
CONFIDENTIAL
2
a
NOTHING TO BE WRITTEN IN THIS MARGIN
(30)
which is concrected withi He to baric Issue of confidence
feel tal-
I deal with below
दे
Amb has darols about
the freture of Hay May,
But
3. Since confrontation with the local Communists
began in May, E.C.G.D. have found it necessary to
an ever
seek & tighter guarantee. No longer do they regard
this as a Section 1 project, since the risks now
exceed the normal commercial levels for which the
approval of their Advisory Committee could be sought.
it
They see this as a Section 2 project (where, as ym kuai,
political considerations and "the broader United
Kingdom national interests" are involved) and are now
calling for a 100% guarantee from the Hong Kong
Government enforceable against their assets in
London. We have not/put this requirement to the
Hong Kong Government, We see ne point in deing 007
"Kurl] the difficulty they peniusly felt about in view of that Government's previous refusal to
Beir
giving
, sicardly,
give-even a proportionate guarantee, and its request us
(a copy of which I attack)
in Hong Kong telegram No.833/that H.M.G. should
give any guarantee required, Unless this position
of
stalemate is soon resolved, the project must
collapse.
our
4. The prime objective of/policy in Hong Kong is to
sustain public confidence; if the commercial
community or the man in the street is moved to doubt
there, the ability or the resolution of the authorities/and-
& particularly of
the business world. in Hay Kary, and.
also amayor a very wide fiction of the Coral
Community,
H.M.G., to withstand the present Communist challenge,
then the situation in the Colony will deteriorate
immediately and drastically. In this context the now come locally to an entirely Tunnel project has/acquires an importance beyond its new mare Sigificance. intrinsic merite, regrettably, perhaps it is/seen
now
in Hong Kong as a supreme test of the authorities"
of With the Hay Kay Get &
confidence and determination The Governor's
on this found conclusion (which we share) is that the project
Whereas precinerty in
was a purly commercial
CONFIDENTIAL
the of operfectly
/must
Д
project and where a measly cepitimati & have doubts a reservations (as fraubly or did feel sonu
Hary
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