НКК 6/548/3
CONFIDENTIAL
Hong Kong Department
XĴ
25 April, 1969
LAST
REF.
NEXT
REF.
Department /
I had intended writing before Easter. Now I regret to say the gap is an enormous one. I must express my sincere contrition.
2. Now that the Tunnel project is home and dry, barring last minute disagreements on detail, we here wish to express our gratitude and admiration for the skilful and helpful way in which you have handled matters at your end. But for your administrations I think the Tunnel Company would not so easily have retraced the path into the arms of ECGD nor for that matter would ECGD have so readily received them. The negotiations caused us a little anxiety in the latter stages when it came to defining the political circumstances in which the separate guarantees of the shareholders would be waived. However, we had always anticipated that there must be an element of political risk in the appearance of a written formula on this point in documents relating to the agreement. It would seem to be in the interests of all that the letter of intent (and any other document touching on the point) should be shielded from public disclosure. I trust that this will be the case.
3. We are getting near to the crunch with Kai Tak: incidentally, thank you for your 21/8 of 3 April; this is interesting news. I would not like to forecast Hong Kong's chances except that there are now pretty clear indications that the most they can hope to get out of us by way of a loan is £3 million, or rather less than half what they have asked for. This £3 million the Treasury think ought to come out of aid funds but we are slap up against ODM's strong objection to providing aid for so wealthy a territory as Hong Kong. It will not be long I think before the issue becomes one for Ministers rather than officials so that we may not have too long to wait.
4. You will be aware that the U.S. Secretary of Commerce, Stans, has been doing the rounds of European capitals following up Nixon's pre-election undertaking to the American textile industry to give
From the start there has been little them some sort of protection. doubt that it is the Far Eastern exporters whom Stans is after. Stans' visit to London ends to-day and there have been two days of discussions on which we have so far not received a full report. But we know that the Americans have concentrated, rather as we expected, on Hong Kong. It appears that they were stoutly resisted. The Board of Trade brief was supplemented by special arguments in Hong Kong's favour and David Sellers of the Hong Kong Government Office, who comes, of course, from their Ministry of Commerce and I Industry, was, by special dispensation, present at the talks. think it would be best at this stage to say no more to anyone who may question you about this than that you know that HMG clearly stated her responsibility for Hong Kong and ensured that the Hong Kong point of view was fully explained to the visitors.
M. P. V. Hannam, Esq., HONG KONG,
As you
/must know...
TIA!
No comments yet.
Private notes are available after approval.