TNAG-1662-FCO40-2310-Hong-Kong-Western-Harbour-Lantau-Strategic-Development-proje-1987 — Page 39

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TELNO OTTER 122

OF 10104OZ JUNE 87

MNFO PRIORITY PEKING

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MY TELNO OTTER 121 # SHENZHEN SEZ. PORT DEVELOPMENT AT MERS BAY

1. AS RECENTLY AS AUTUMN 1986 THE CHINES AUTHORITIES SEEMED TO BE HMPLYING THAT PORT DEVELOPMENT IN THE SOUTH WOULD BE FOCUSSED ON EXISTING FACKLITJES AT HUANGPU AND GUANGZHOU WHILE PLANS FOR THE SEZ'S INCLUDING SHENZHEN WOULD BE PUT ON THE BACK BURNER.

2. INT SEEMS ALMOST TOO MUCH OF A COINCIDENCE THAT THE CHINESE SHOULD CHOOSE TO PUBLICISE THE MARS BAY PROJECT AT THE SAME TIME THAT THE SHENZHEN AIRPORT ›RSSUE #S MAKING HEADLINE NEW IN HONG KONG. THE TEMPTAT PON INEVITABLY EXISTS TO INTERPRET THIS AS A MOVE TO ''ENCOU- RAGE'' THE HONG KONG GOVT TO SHOW A GREATER SENSE OF URGENCY OVER NTS OWN PLANS FOR THE FUTURE OF THE TERRITORY'S AIR AND SEA PORT

FACILITIES.

BUT #NFACT THE MIRS BAY PROJECT HAS BEEN HAVERING IN THE BACK- GROUND FOR A LONG TIME. APPARENTLY SOME TWO YEARS AGO BANQUE SUISSE AGREED TO BACK ARCHIRODON, THE SWISS BASED GREEK ORGANISAT BOM,* TO THE EXTENT OF US DOLLARS 50 MILLION TO CARRY OUT THE FIRST PHASÉ (BRBAN MORGAN (COSTANS) HAS ESTIMATED THAT THE WHOLE DEVELOPMENT COULD COST BETWEEN US DOLLARS ONE AND ONE AND A HALF BILLION) BUT THE PROJECT DOES NOT APPEAR IN THE CURRENT FIVE YEAR PLAN AND ALLEGEDLY THE CENTRAL GOVERNMENT INDICATED THAT THE SHENZHEN AUTHORITIES SHOULD FIND SOME MEANS OF ATTRACTING FOREIGN INVESTMENT IF THEY WASHED TO PUT THE PROJECT FORWARD FOR SERIOUS CONSIDERATION.

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4. ACCORDING TO MORGAN, SCHRODERS HAVE BEEN DISPLAYING GREAT INTEREST UN PUTTING UP MONEY FOR THIS PROJECT LATELY AND HE SENT DETAILS BACK TO COSTAINS AN LONDON WHICH LED TO A RECENT MEETING OF A NUMBER OF POTENT HALLY INTERESTED FIRMS INCLUDING INCHAPES,POWELL DUFFRYN ETC. BUT HE HAS HEARD NOTHING MORE AND ASSUMES THAT THE

SCHEME AROUSED INSUFFICIENT ENTHUSIASM.

5. NT NS WOURTH NOTING THAT MIRS BAY ENJOYS DEF KNUTE NATURAL ADVANTAGES OVER THE OTHER PROJECTED PORT DEVELOPMENT UN SHENZHEN