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From D.1.1. (AF long) sals
25/11/70
In the course of his visio to Dopartacats and the City prior to taking up dutice ne biasnofel feczupang towards the middle of next year Me Paddon Cevo gald a visit to CR92 on 18 Reverbop. Mx fanders, He Tomo and ite
ño Cave as was only to be expected took a stoutly pro-llong Kong line and we got the impecceton that he was unlikely to introduce any material changes into fir Schn Corperthwaite's financial policies. It wae intorouting to hêng him develop the phone that the Japanene hed no particular advantages in their commercinl dealings with Hong Kong, if anything, they were at a disadvantage because many of the Chinese population distrusted the end there had been Japanese allegations of unfair treatment. It was useful to have confirmation that in leaning over backwarda to be impartial in the adjudiention of Londors the Hong Kong Covernment hed no unti-Dritish biza, The orturel advantares Britain hold in Hong Kong remained:- the presence or the large British-owned merchant houses, the fact that Baglish was the offlo121 lan unge and that in the last recort the Colony was our political responsibility. It was up to commence and industry in the DA said Mr Hadden Cave to make the most of thoa. Chope woZS DOLE things that still rankled with the Hong Kong Covernment. failure to help pay for the airport extension was one of thede (Mr Haddon Cave did not mention the case of the tunnel.)
In the course of the discussion sono points extrged about cupros iesues which might be worth recording.
4/11/19
1. Public sector contrsets generally. All the lange onsd go out to internetional songos "for philosophical reasong" There is a Public Sonder Boond of which Mr Eaddon Cave de currently Chuirmen. Tenders are ovaluated on the basis of price, delivery and other commercial considerations. Generally speaking the Government does not resort to contractor finance♣ A tonder which offered credit turup vkoa the specification called for a cash price would be disqualified, se would any other failure to comply strictly with the published conditions. The Covernaerts policy would of course preclude any commitment to give preferential treatment to anyone.
11.
The Kai Wak czconsien. This had been awarded to tho Japanese in the absence of any more favourable tender. No credit was involved. Hong Long was not happy with the business ao coste hid already oscalated and they had never boon fully convinced of the need for this cxtension. agreeing to go ahend they had boned to pressure from the touriem lobbies. Their chce to the UK had boen buacd on the Isot that a regional nirport would have sufficed for Hong Kong's ona needs. it se the US who had developed it into an internation:1 one and the benefit from any enteroi on of the international Facilities would accrue to the UK and not to Hong Kong.
iii. The Haec Trakett schema, The latest report had
suggested (contrary to expectations!) that an underground scheme could be modo commercially viable. The hesitation of the Government to go ahead was leas on the score of inability to finance the project then because it was in their view very doubtful whether having committed vast resources to the scheme it wouli prove the molution to Hong Kong's traffic problems. Transport experts wore divided on this point and would retain s0. He Haddon Cave sold he thought a paclure of metuurco designed to discourage street parizing an improve public road vehicle services
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