CONFIDENTIAL
commercial grounds. Although we accept that you are now judging the project on purely "commercial grounds with no political overtones" (and even today this is perhaps not strictly the case in view of the political considerations that the Governor has raised and we have supported), it is not true that you have done so throughout. I must say that we feel considerable doubts that Hannam's objective of influencing Hong Kong opinion favourably by this means will succeed. We think it unlikely that, given the history of earlier negotia- tions, as leaked from time to time by the Tunnel Company, a statement that our position throughout has been based on commercial considerations only would be believed there. We are also doubtful about the wisdom of raising the question of the Tunnel in Parliament at the present time so giving the Hong Kong parliamentary lobby an opportunity to ask further, perhaps awkward, questions.
3.
I frankly see no way of avoiding the unfortunate political consequences if the project is not in the end British. However, Moreton will (I feel sure) have discussed this telegram with Hannam and will no doubt have some views on it when he returns to the office next week. If, as a result, we see it in any different light, I will be writing again. We remain ready of course to consider any views you may wish to express.
Copy to:
(W. S. Carter)
Mr. J. E. Gowers, Board of Trade.
CONFIDENTIAL
No comments yet.
Private notes are available after approval.