would be oqually if not more effective and infinitely Loss expensive. Any Loan that they might be ready to talo a decision quickly on the Freeman Fox report was ludicrcus, Ho hed just aeon a "wholly misleading" report in the Export Times,
iv.
Desalination. Horo again an Caply decision was unlikely. The consultants were busy promcing a further report. Mr Haddon Cave beliovod it would be premature to commit the Colony to a large scale desalination prog?EKMC.
Fo Yas impressed by the views of the Colony's water experts and by the fact that no country had yet had experience of a decali- nation plant on the scale of commercial operation which would be required. So mentioned in passing the unfavourablo impropsion that had been 100% by Mr Rothschild in the course of his discussions on this cubject in Hong Kong.
.
Lainer port.
Hong Zong hud been disappointed at the performance of (CL. True the firm had been saccensful in obtaining one of the three bertho (they had hoped to get two) but even this had only been possible because the Government had helped them to a degree which verged on favourition. COL had been the first to admit that they had no one but themselves to blame for their failure to do better. assisting 001 as they had the Government had taken into account the political undesirability of one country establishing a dominant position in the port development scheme.
In
Arising out of a reference to our channels of communication, Mr Vaddon Cave pointed out that come 40 overseas governulato maintained representatives in Hong Kong. While not all of them were commercially active there who & problem for the Govorament An having to try and treat then all fairly. It was onea to su Y Senior Trade Commissiones to Satrin infosaution shot the Government's thinking and future developments equally with the others and in many cases he would be in a better position 68 do ks regarde inforation on tendors where Uk Pipes 10?O unsuccessful (a point in which we had expressed interest) the normal practice was to publish details of the successful tender and possibly of the runners-up. Mr Bddon Cave accepted that it would be right to tell unsuccessful firus who aight ank tllo reasone for their failure.
Mein
Bo absured Kr Radden Cave that we were not seeking a proferonco for British firms nor information which he did not Icel ablo to give us. We fully understood the need for British companies to win business on consorcial merito. It would be counterproductive for us to encourago industry to undertake projecte which the Colony did not want unsorteken, still legs to go for business on unccononic tenug. Hotover so far as the public scctor in Hong Kong was concerned ve rogarded it as part of our job to investigate the reasons for lack of auccess. Early and reliable information about the Government'o thinking and prioritica would enable us to encourego Ga industry to respond in a way which would help achieve the Governments purpose. Mr Heddon Caro nodded his agreement.
cc Mr Blackwell Hong Kong
CRE2
20 November 1970
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