TNAG-1940-FCO40-2766-Future-of-Hong-Kong-defence-and-public-order-1989 — Page 224

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CONFIDENTIAL

CENTRAL/WANCHAI RECLAMATION PROJECT

Redacted

under FOI exemption 27(1)

We and the Hong Kong Government will be doing all we can to restore confidence as part of our responsibility to maintain the stability and prosperity of Hong Kong.

One important way in which confidence can be sustained is by the

Hong Kong Government pressing forward with new infrastructure

projects.

Central/Wanchai Reclamation Project is a good example of this: will provide much needed land for commercial, office and transport

use: key component of Hong Kong's continuing economic success.

Nothing would be better for confidence in Hong Kong than to make

an early announcement that the Project was going ahead.

Conversely, nothing would be more damaging to confidence than if

it were to become known that the Project had been suspended or

delayed because of objections from China.

Must stress that

decisions will need to be taken before end of year.

(Defensive: if Qian insists that PLA will be stationed in Hong Kong

after 1997 and have the right to decide location)

Recognise that as sovereign power China has right to station

troops in Hong Kong.

But in present circumstances important to take account of deeply felt concerns in Hong Kong about PLA presence there after 1997.

Need to distinguish Central/Wanchai Reclamation Project from

general principle of stationing troops in Hong Kong. Look to Chinese to show understanding of urgent need to press ahead with

project,

BOPAAE

CONFIDENTIAL