TNAG-0097-FCO40-133-Construction-of-a-Cross-Harbour-Tunnel-1968 — Page 172

HWB. 21/5.

NOTE

CROSS HARBOUR TUNNEL HONG KONG

S

Whatever the economic/social merits of this project it has

become invested with great political significance because of the

disturbances and is now widely regarded in the Colony as a test case

of local and outside confidence in Hong Kong's ability to withstand

the Communist challenge. The disturbances have also increased the

project's importance on security grounds in that a tunnel would be

much less subject to disruption than is the present Cross-Harbour

ferry. For these reasons, it is considered essential that the

tunnel be built.

2.

Public confidence in Hong Kong requires British participation

in financing the project; if such support is not forthcoming, it

will be assumed that London has written Hong Kong off.

3. The promoters and the Hong Kong Government have previously

rejected proposals that they should give the guarantee that

E.C.G.D. requires, but it is considered that if H.M.G. are to become

involved, then it is reasonable for the promoters and the Hong Kong

Government also to shoulder part of the guarantee responsibility.

A 50 - 50 division between Hong Kong and the British Government is suggested, with the Hong Kong element being divided between the

Government and the promoters.

4.8

15 August, 1967.

This pater

was considered at

a weeking on lved. 16 Aug

altended by

Messis Carter (Chairman), Hewitt, Moris (BoT), Duchhe (Elis) Lucas (Treasury)

• Swich (CFPD, Co).

kw/22/8.