CONFIDENTIAL
circles the villain of the piece is more specifically E.C.G.D. - thanks largely to the conversation of certain Tarmel Company directors. Hong Kong Government officials are themselves quite bitter about the complete absence of any official indication from London of what the delay is about or when it will end.
5. The resultant fears that, despite Governmental protestations, London is quite cynical about the future of Hong Kong make my job very difficult, A simple illustration is that I depend on Col. Clague, a principal shareholder in the Tunnel Company, for his goodwill as Chairman of the Working Party dealing with the Yorkshire textiles problem. If Britain appears to mit to see which way the cat jumps before deciding on the fate of the tumel, wach of the good achieved by British Week and B.N.E.C's recent commercial promotional activities will, in my opinion, be dissipated.
6. I believe that a very early decision is essential. If it is against Section 2 action or even against the tunnel through any form of B.C.G.D. cover; too bad. Convincing reasons will have to be found and the Hong Kong Government will have to help by explaining their own need to conserve funds for more vital projects. I see this as a much lesser evil than procrastination. If the tunnel is to go through on magnanimous terms from London we shall get the credit now, not later on.
7. I have copied to Cotterill in E.C.G.D. and I enclose an extra copy in case you feel Carter in the Commonweal th Office should have it.
(B. Thorne)
Acting Principal Trade Commissioner
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