CONFIDENTIAL
Commonwealth Office,
London, S.W. 1.
27 March, 1968
102
Judging by reports reaching us, it seems there may be some slight revival of interest and of opinion in Hong Kong in favour of the Tunnel project.
Montagu, after visiting Hong Kong last month, told me of his intention to see what could be done to re-establish the project on a fresh financial footing; he talked in terms of an injection of new finance from outside Hong Kong. He mentioned the high cost of the mass transit proposals as a factor leading people to look more favourably on the tunnel and, when I asked him how widespread this attitude was, said it was to be found in unofficial members of both Councils. We have since seen a report of P.C. Woo's contribution on this subject to the Budget debate.
However there are no developments known to us which would indicate that the project could proceed on the basis at present conceived. And the deadline you set the Tunnel Company in your letter of 18 December is near at hand. You may therefore shortly be considering with the Company the terms of an announcement about abandoning or shelving the project. It would ease a few consciences here, I think, if your decision were to be the latter. I imagine too that the Company might be reluctant at this stage to write off its existing investment in the project.
Whatever the decision, I hope you will consult us about the terms of the announcement or, if you feel you cannot do that, at the very least forewarn us of its contents.
(W. S. Carter)
J. Cowperthwaite, Esq., CMG., OBE.,
Colonial Secretary,
HONG KONG.
ST
! 107
FIDENTIAL
No comments yet.
Private notes are available after approval.