TNAG-1175-FCO40-1477-Proposed-replacement-airport-for-Hong-Kong-at-Deep-Bay-or-Ch-1982 — Page 111

PERSONAL

布政司署

香港下亞畢道

本署檔號 OUR REF.:

(15) in T/S 1748P, PATASTR, NC ST

HICK 18~|!

* YOUR REF.:

HKK 182/1

16

SECRET

GOVERNMENT SECRETARIAT

LOWER ALBERT ROAD

HONG KONG

19 April 1982

No

R D Clift Esq

Cho

1 22/486022/4

Hong Kong & General Dept

F CO

Mr. Mc Quad

Mr. Willinger Jener

Year inck,

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Riemsider how

inforum DOT (Aurie

Enter

This looks ox.

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13

122/14

REPLACEMENT AIRPORT

I am sorry you have not had an earlier reply to

your letter of 17 March.

2.

The consultancy mentioned by David Jeaffreson to Durie of the DOI is a "financial evaluation study" to be undertaken by Schroders and Chartered Limited in associat- ion with the Chartered Bank and Cooper and Lybrand Associates Limited. The agreement for this consultancy is about to be signed. I attach a copy of the Consultants' brief which sets out clearly the scope of the study.

3.

You will see that task 6 is "a review of all available sources and forms of finance and their possible application to the project". The Consultants are required to make their own assessment, without consulting anyone outside the Government. The only specific reference to 1997 is in the introduction to Stage 2 (page 6), of which task 6 forms a part. The key passage reads: "in carrying out the study, Consultants should assume that present arrangements for administration of the whole of Hong Kong will continue, but in examining sources of finance and the response of the markets to the airport project, they will advise on the likely attitudes of potential lenders if the status of Hong Kong post-1997 has not been settled at the time finance is being sought. This aspect of the study will be limited to Government and the Consultants who will not seek outside views or advice".

4.

In laying down the requirement that the Consultants should not approach outside institutions in considering sources of finance, our concern was, of course, to avoid the rumours and speculation which might very well result if wider enquiries were made. The assessment on the

SECRET

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