TNAG-0322-FCO40-358-Construction-of-underground-railway-system-in-Hong-Kong-1971 — Page 109

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2/13.1

BY BAG

29671

CONFIDENTIAL

BRITISH TRADE COMMISSION IN HONG KONG

7th Floor, Shell House, Queen's Road, Central, HONG KONG Mail Address: P.O. Box No. 528, Hong Kong Cable Address: "Uktrade Hongkong" Telephone: 230176

Our reference: 21/9 (II)

Your reference:

KC Price sq

CRE

Department of Trade & Industry

1 Victoria Street

London SW1

4 January 1971

KA

Dear Ken,

I have just had a session with Tony Shephard and he confirms that the ́ Transport Committee have reported favourably on the scheme as proposed by the Consultants with the proviso by one member that air-conditioning

should be installed.

It is not known yet how the Government will react, although this is likely to be on the usual lines strong support from the Transport Commission and the PWD, opposition (but perhaps not total) from the Financial Secretary, and varying degrees of support ranging from benevolent neutrality to active support from other members of the Government. The Chinese members of Legco and Exco are likely to support Finance the fit for fear of criticism from the Chinese community and in any case

being without financial responsibility. pregro have to find

سه

It is, of course, still not known when a decision by Government will be made but Shephard seems to think that at least a decision in principle by Exco is possible in March - although the financial implications will have to be worked out subsequently, certainly before the Governor gives his assent. The soonest, therefore, a Mission could usefully come out would, I think, be in March, either just before the Exco decision when a bit of lobbying may come in useful or just after when the Government may be more prepared to talk turkey. I am sorry I cannot be more precise but we shall have to play this by ear. I personally felt that we could expect little progress until John Cowperthwaite leaves, probably in May 1971, but Shephard seems convinced that he will accept the inevitable and at least a provisional decision can be expected before then. Public opinion and the press (please see the enclosed newspaper cutting) have come out strongly in favour of the scheme and may force his hand.

As for future action on our side, Shephard believes, as indeed do I, that it must be made plain to the Hong Kong Government that the U.K. Govern- ment is taking a close interest in this project. He does not think that i is enough for business interests alone to come out here.

He agrees, however, that for the British Government to be seen to be openly putting pressure on the Hong Kong Government would, of course, be counterproduc- tive. He seems to be thinking of business interests with political back- ing, although how this can be done, I am not at all clear.

/He still

Jis/

CONFIDENTIAL

Every effort is made to ensure that the information given herein is accurate, but no legal responsibility is accepted for any errors or omis sions in that information and no responsibility is accepted in regard to the standing of any firms, companies, or individuals mentioned.