TNAG-0206-FCO40-242-Construction-of-a-cross-harbour-tunnel--under-Hong-Kong-harb-1969 — Page 10

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PRIORITY

CYPHER

PRIORITY

FOLLOWING FROM HONG KONG DATED 26TH FEBRUARY CONFIDENTIAL

CHRISTIAN 303 OF 26 FEBRUARY

FOR CARTER HONG KONG DEPARTMENT FROM HANNAM TRADE COMMISSION

TUNNEL .

าจ

TODAY'S HONG KONG PRESS LEADS WITH REUTER REPORTS FROM LONDON THAT E.C.G.D. IS BACK IN THE RUNNING FOR THE TUNNEL. THIS IS BOUND TO START PUBLIC SPECULATION GOING AGAIN HERE. IN ADDITION I BELIEVE THE TUNNEL BOARD MAY POSSIBLY PROPOSE FULL SCALE TALKS WITH E. C.G.D. IN THE FAIRLY NEAR FUTURE, A COURSE WHICH WILL GIVE FURTHER IMPETUS TO PUBLIC SPECULATION HERE.

2. MAY I SUGGEST THAT YOU DISCUSS WITH NEWS DEPARTMENT AND E.C.G.D. THE IDEA OF INSPIRING A PARLIAMENTARY QUESTION AT A FAIRLY EARLY DATE. I AM ANXIOUS THAT THIS TIME PUBLIC SPEC- ULATION IN HONG KONG SHOULD BE CONCENTRATED ON THE COMMERCIAL ASPECTS OF THIS BUSINESS, AND SHOULD NOT BE LED TO BELIEVE THAT S.C.G.D. IS INFLUENCED BY POLITICAL FACTORS.

3. AS I SEE IT THE OBJECT OF THE PARLIAMENTARY QUESTION WOULD BE

(A)

TO BRING OUT THE FACT THAT THE HONG KONG GOVERNMENT HAVE NOT FELT THE SCHEME SO ESSENTIAL AS TO FINANCE IT THEMSELVES,

(3)

(C)

THEY HAVE THEREFORE GIVEN IT TO A PRIVATE COMPANY, THAT E.C.G.D. HAVE THEREFORE HAD TO JUDGE THIS QUES- TION THROUGHOUT ON COMMERCIAL GROUNDS, WITH NO POLITICAL OVERTONES.

(D)

BY IMPLICATION THAT IF THE FRENCH EVENTUALLY GET THE CONTRACT IT WILL BE BECAUSE THEY JUDGE THE MATTER ON POLITICAL RATHER THAN COMMERCIAL GROUNDS.