CONFIDENTIAL
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Constitutional Development
13. The LEGCO elections went off smoothly on 26 September with
a good turnout. There were no surprises amongst those elected
(Mrs Elliot lost to Hilton Cheong-leen in the poll for the UrbCo seat). Comment in the leftwing press, and by NCNA, was
restrained, and in some cases cautiously positive. Xu Jiaton
said it was good that 5 BLDC members had been elected. He has
accepted an invitation
the Governor's reception on the
opening of the new LEGCO.
Hong Kong Dollar Finance
14.
and
to
Treasury officials have agreed, at a meeting with FCO, DTI
ECGD officials on 3 October, to review the present
restrictive rules governing ECGD ability to offer support for
contracts in non-standard currencies (of which the Hong Kong
dollar is one). In view of the number of major public sector
contracts that are coming up
the in Hong Kong over
next f ew
months, and in which UK firms have a potential interest (eg
Second Harbour Tunnel), Treasury have agreed to consider
sympathetically a DTI request to waive the usual rules on
Hong Kong dollar finance for all these contracts.
15.
Meanwhile after several months' manoeuvring KCRC have finally agreed to purchase the rolling stock for the Tuen Mun
system from Met Cam (value £30 million) rather than the
Japanese. Also, despite the award of
of the main Tuen Mun rail
contract to the Australians rather than to GEC, British
companies have since secured sub-contracts worth about £30
million (value of original contract £100 million).
Visit to Hong Kong by Mr Renton
16. Mr Renton will visit Hong Kong between 27 and 31 October.
The main purpose of his visit will the opening of the new LEGCO
on 30 October. This visit was announced to the UK press
yesterday. We are preparing briefing in consultation with Hong
Kong.
CONFIDENTIAL
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