TNAG-1268-FCO40-1617-China-s-economic-relationship-with-Hong-Kong-Shenzhen-econom-1983 — Page 4

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CONFIDEN HALK Above fil

FM HONG KONG 3009457 DEC 83

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TELEGRAM NUMBER 2042 OF 30 DECEMBER INFO PRIORITY PEKING DTI

INFO SAVING BTC HONG KONG(ACTIONED)

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BTC TELNOS OTTER 267 AND 268 TO DTI: SHENZHEN INTERNATIONAL AIRPORT

1. EAI ARE NOT THE FIRST CONSULTANTS TO HAVE BEEN INVITED TO DISCUSS THE POSSIBLE DEVELOPMENT OF A SHENZHEN INTERNATIONAL AIRPORT (SIA). WHILE WE ACCEPT THAT THEY WILL WISH TO PURSUE COMMERCIAL OPPORTUNITIES IN CHINA THERE ARE GOOD REASONS FOR TREATING THIS PARTICULAR PROJECT WITH CAUTION.

2. SEZDC-SIAPCO HAVE ASSUMED THAT SIA WILL BE QUOTE HONG KONG'S SECOND AIRPORT UNQUOTE (PARA 3 OF TELEGRAM UNDER REFERENCE). UNFORTUNATELY, BAI APPEAR NOT TO HAVE QUESTIONED THIS ASSUMPTION. OUR OWN CURRENT AIRPORT PLANNING TAKES NO (NO) ACCOUNT OF THE USE OF AN AIRPORT IN CHINA AC EITHER A SECOND HONG KONG AIRPORT OR A REPLACEMENT AIRPORT FOR THE HONG KONG INTERNATIONAL AIRPORT. AS YOU WILL RECALL THE QUESTION OF SITING OUR REPLACEMENT AIRPORT IN CHINA WAS CONSIDERED BY EXCO IN AUGUST 1980 AND FEBRUARY 1901, AND IT WAS THEN DECIDED NOT TO PURSUE THIS OPTION. AT THIS STAGE WE SEE NO REASON TO ALTER THIS VIEW, EVEN THOUGH OUR PLANE FOR OUR OWN REPLACEMENT AIRPORT HAVE BEEN SHELVED FOR THE TIME BEING. THE ARGUMENTS AGAINST A HONG KONC AIRPORT IN CHINA REMAI PERSUASIVE (SEE PARA 12 OF OUR TELNO 1173 OF 13 SEFTEMEEF 1980 IN PARTICULAR). WE VERY MUCH DOUBT WHETHER SEZDC-SIAPCO HAVE EVER BEGUN TO CONSIDER THE FULL IMPLICATIONS OF USING SIA FOR HONG KONG TRAFFIC.

3. AN INTERNATIONAL AIRPORT IN, OR CLOSE TO THE SHENZHEN SEZ WOULD BE BOUND TO HAVE SERIOUS IMPLICATIONS FOR HONG KONG AIR TRAFFIC CONTROL. WE SHOULD THEREFORE HAVE RESERVATIONS ABOUT THE PROJECT EVEN IF IT WERE INTENDED FOR TRUE PRC INTERNATIONAL TRAFFIC ONLY.

4. IT WOULD IN ANY CASE BE WISE, IN THE LIGHT OF PAST EXPERIENCE OF DEALINGS WITH SHENZHEN, TO VIEW THE PRESENT PROPOSAL WITH SOME SCEPTICISM. THE SHENZHEN AUTHORITIES TEND TO EXPRESS ENTHUSIAS FOR LARGE-SCALE PROJECTS WHICH THEY DO NOT HAVE THE RESOURCES TO FINANCE AND WHICH THEY EXPECT TO SEE COMPLETED IN A QUITE UNREALISTIC TIMESCALE. IN THIS CASE THEY HAVE APPARENTLY BEEN TOLD BY PEKING THAT THERE WOULD BE NO OBJECTION TO CONSTRUCTING AN INTERNATIONAL AIRPORT IN SHENZHEN. BUT IT IS CLEAR THAT 10 (10) CENTRAL GOVERNMENT FUNDS WILL BE AVAILABLE FOR THE PROJECT.

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