TNAG-1175-FCO40-1477-Proposed-replacement-airport-for-Hong-Kong-at-Deep-Bay-or-Ch-1982 — Page 101

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(c) the interest of IMG in Hong Kong, and the ingenuity of the city betweem them mean that Hong Kong is likely to get better financial package out of the UK than out of anyone else, but the sooner it makes up its mind the better (more certain) the deal it will get;

(d) if the long Kong Government saw political advantage in using contractors from the PRC in developing the airprot the UK group would be happy to work with them.

We are not, however, in a position to say these things formally because it is premature to do so yet in Whitehall, and also because the EGCI are still struggling over the Taylor Woodrow proposition that Taylor Woodrow should be regarded as the UK group (but I expect this to be resolved shortly). I can see no objection whatever to trying this line hypothetically with Mr Brenridge to see his degree of interest. The discussion itself will suggest the most appropriate next steps.

R.C

DRC DURIE

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2 June 1982

PS:

I now understand that Lazards have concocted a scheme which would require no financial outlay by the HKG before the commissioning of the airport. They, with GEC and Taylor Woodrow, would very much like the opportunity to discuss with Mr Bremridge while he is in the UK. We should encourage him to do so.

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DRC DURIE

CONFIDENTIAL