5.
THERE CAN, OF COURSE, BE NO QUESTION OF HKG PAYING A
ROYALTY TO THE CHINESE FOR FILL TAKEN FROM DEEP BAY. OUR POSITION
4
AS YOU KNOW, THAT THE WHOLE OF DEEP BAY IS HONG KONG WATERS. MOREOVER OUR PROPOSED BORROW AREA IS SOUTH OF THE NAVIGATION
CHANNEL DOWN THE MIDDLE OF THE BAY. WE HAVE TOLD MCL THAT THERE
CAN BE NO QUESTION OF A ROYALTY PAYMENT BUT THEY HAVE STUCK TO
THE IR GUNS AND SHOW NO SIGNS OF SHIFTING. WE HAVE LITTLE DOUBT
THAT THE SHENZHEN AUTHORITIES DO INDEED HAVE THEIR EYE ON THIS
ATTRACTIVE SOURCE OF UNEARNED INCOME. THEIR APPETITE WAS NO
DOUBT WHETTED BY THE ORIGINAL PROSPECT OF SELLING US FILL FROM
THEIR SIDE OF THE BORDER AND THEY DO NOT WISH TO PASS UP
COMPLETELY THE CHANCE OF A NICE LITTLE WINDFALL TO HELP BALANCE
THEIR BOOKS.
6.
THE 1982 AGREEMENT CONTAINS AN ESCAPE CLAUSE WHICH ALLOWS
HKG TO AVOID A CONTRACT WITH MCL IF IT SHOULD DESIRE ITSELF TO
PROVIDE THE FILL MATERIAL''. WE HAVE NOW DECIDED TO INVOKE
THAT CLAUSE AND FIND OUR OWN CONTRACTOR TO EXCAVATE THE FILL
FROM DEEP BAY (WE WOULD DELAY THE PROJECT FOR AT LEAST TWO YEARS
IF WE WERE TO LOOK FOR ANOTHER SOURCE OF FILL, WHICH WOULD ALSO
BE MUCH MORE EXPENSIVE). THIS WILL DISPLEASE SHENZHEN AND THEY
MAY FEEL OBLIGED TO RESPOND BY PROVOKING A DISPUTE OVER WHO OWNS WHAT IN DEEP BAY. THIS, OF COURSE, WOULD BE MOST UNWELCOME. IT
COULD DAMAGE RELATIONS WITH SHENZHEN. IT COULD ALSO RAISE THE
WHOLE QUESTION OF HONG KONG'S BOUNDARIES, WITH ALL THE PROBLEMS
THAT THAT MIGHT ENTAIL. ON THE OTHER HAND, WE SEEM TO HAVE LITTLE CHOICE IN THE MATTER IF WE ARE UNABLE TO PROCEED WITH MCL
UNLESS WE PAY THEM A ROYALTY. TO PAY A ROYALTY WOULD SERIOUSLY COMPROMISE OUR POSITION ON THE QUESTION OF HONG KONG'S BOUNDARIES.
IT WOULD NOT REMAIN A SECRET AND THE CONSEQUENCES OF PUBLIC
DISCLOSURE COULD BE VERY DAMAGING INDEED.
No comments yet.
Private notes are available after approval.