TNAG-1662-FCO40-2310-Hong-Kong-Western-Harbour-Lantau-Strategic-Development-proje-1987 — Page 29

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(e) Wu was forcing the pace too much. Realistically building might start in, say, 1990 and would take longer than the 4 years Wu predicted. There was virtue, both politically and in maintaining financial confidence in Hong Kong, if the construction of such a large project were to span the transfer of power. I said I could see the sense of this, but if the work were completed before

1997 it would equally be a highly visible symbol of commitment to the future of Hong Kong.

Mr Jacobs said that Gordon Wu's planners and those of the Hong Kong Government have begun a dialogue in the hope of establishing some commonality. This was obviously the sensible way to proceed. The attitude of the PRC would be crucial. Pressures, particularly from the military which ran China Airlines, were likely to develop in favour of an airport at Shenzen over which the PRC might have greater control and China Airlines enjoy unfettered traffic rights.

I told Mr Jacobs that the Minister for Trade was thinking of writing shortly to the Governor to express the British Government's interest in the proposed project and its support for British industry. Mr Jacobs thought this would be helpful. It might be that British Government guarantees as well as HKG financial guarantees would be needed. Mr Jacobs said he would keep in close contact with Mr Holloway, the British Trade Commissioner who would act as a conduit.

Comment

While it is clear that the Hong Kong Government will resist being bounced into acceptance of Wu's plans and will favour a longer timescale, they make such good sense and have such obvious political attractions that the Hong Kong Government are likely to brought round to acceptance of them in some form. Mr Jacobs made it clear that for his part, he would very much welcome maximum involvement by British industry and was prepared to be helpful behind the scenes. I do not think this affects the terms of the letter Mr Clark might write to the Governor. It would be premature to offer any comment on the prospect of British Government guarantees.

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