TNAG-0206-FCO40-242-Construction-of-a-cross-harbour-tunnel--under-Hong-Kong-harb-1969 — Page 11

4. I THINK POINTS (A), (3) AND (C) MUST BE MADE CLEAR BEFORE

THE TUNNEL COMPANY MAKES PUBLIC ANY DECISION ABOUT THE

SOURCE OF FINANCE FOR THE SCHEME. YOU WILL BE AWARE THAT WE

NOW THE FRENCH INTERESTS HAVE ASSURED THE TUNNEL COMPANY

AT THEIR MINISTERS WILL OVERRULE ANY OBJECTIONS THAT COFACE MAY RAISE ON THE GUARANTEE QUESTION. IF THE TUNNEL COMPANY THEREFORE EVENTUALLY DECIDE IN FAVOUR OF THE FRENCH OFFER,

THEN MY INFORMATION SECTION COULD POINT TO THE PARLIAMENTARY

QUESTION AS EVIDENCE THAT WE TOOK OUR STAND ON COMMERCIAL GROUNDS, AND SO REBUT ANY SUGGESTION THAT H.M.G. LACKED POLIT-

ICAL FAITH IN THE FUTURE OF HONG KONG. IF OF COURSE THE TUNNEL

COMPANY EVENTUALLY DECIDE IN FAVOUR OF THE BRITISH OFFER THEN MY INFORMATION SECTION CAN MERELY EMPHASISE OUR COMMERCIAL ACUMEN.

5. IN THE ABSENCE OF ANY PRIOR STATEMENT BY H.M.G. MAKING POINT (C) IT WILL BE DIFFICULT FOR MY INFORMATION SECTION TO DO MUCH TO PREVENT PUBLIC SPECULATION AGAIN CONCENTRATING

ON THE POLITICAL ASPECTS OF THIS WHOLE QUESTION. IN FACT I

PRESUME AT THE PRESENT TIME THE FRENCH INTERESTS WILL NOT BE AVERSE TO HELPING PUBLIC OPINION IN HONG KONG RUN ON THIS

COURSE.

6. IF YOU AGREE WITH MY SUGGESTION I TAKE IT THAT YOU WILL NOT FEEL BOUND TO CONSULT THE GOVERNOR ABOUT THE ANSWER BUT ONLY TO GIVE HIM PRIOR ADVICE OF THE PARLIAMENTARY QUESTION.

ENDS.

SENT AT 26/1613Z WS

23L

AT 26/16132 LW KKKK