TNAG-1039-FCO40-1289-Future-of-Hong-Kong-1981 — Page 61

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discussion at that stage and this cannot be taken as a final indication of their views.

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It may be that China Resources will now seek to offload a large part of their shares, possibly on to a property developer over whom they feel they have some leverage. There is the inevitable risk that they will blame government delays, or the government decision, for any financial loss or failure to make the profits they expected. This has to be set against the very strong disadvantages to the government of committing themselves to their share of an enormous project stretching over a very long period of time. latter arguments are spelt out in the Exco paper. you might like to know, as personal background, that there was very strong feeling in the planning part of government that the whole scheme should be rejected without any suggestion of the limited initial development which is now being offered.

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The

But

I have not copied this elsewhere, since your letter was not copied either. But I have no objection to copies of this going to FED and Peking if you so wish.

(D C Wilson)

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