CONFIDENTIAL
2.
feasibility study. But - as shown by paras 5-8 of the note - there may well be political and economic considerations which have to be taken into account in determining the future of Hong Kong as an air (or any other) communications centre and which it might not be appropriate to entrust to any other than British consultants of proven political discretion. The Hong Kong Government may well not like being thus inhibited in the pursuit of the precious principle of free competitive tender and are liable to react instinctively against what could be interpreted as political pressure in their choice of consultants. But it occurs to me that it may be that this pill might be sugared if we were able to use this project, or study, as one occasion when we offered some financial assis- tance (see paragraph 2 of the note) - I recognise that it is also possible that the Hong Kong authorities would regard this as even further compromising them and react against it the stronger for this reason, but this is I think a risk worth taking.
5. I realise that this particular point is more a political one
than commercial trade promotion. If British consultants were to get the feasibility study there would be some return to the UK in the form of "invisibles" but it would not, of course, follow (our consultants being the pure men that they are) that their recommendations would lead directly to sales of British equipment. But we - oven from the straight trade point of view should not underrate the prestige importance of our getting this consultancy; each time a major undertaking of this kind (or a major project) is won by a non-British bidder, our inage as the "traditional and best source (already much de- minished) is further eroded. Thus although the prime consider- ations may be political I would hope that they would get support from the DTI also on both the export and the civil aviation side.
I should be grateful to be kept informed of developments during Mr Thomson's visit and afterwards, on any of the points in the note and we shall of course continue to keep you informed of any developments that come to our notice, as well as continuing to do what we can to persuade the Hong Kong authorities to buy British equipment for their ILS and 3SR; any further technical arguments which Rigby might be able to supply on this would be very useful.
7 I am sending a copy of this letter and its enclosure to Mr Rigby and also to Mr Laird in the Hong Kong Department of the PCO, who will wish to know that I have discussed the points about the feasibility study briefly with Mark Goodfellow in the light of his own meeting with är Thomson during his "familiarisation" visit this week.
TW Aston
Enclosures.
cc: Mr H S C Rigby, Civil Aviation Division, DTI
Mr E O Laird, Hong Kong Department, DTI
Senior British Trade Commissioner
TWA:mee
CONFIDENTIAL
No comments yet.
Private notes are available after approval.