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OFFICIAL SUPPORT FOR THE AIRPORT PROJECT. WE SHOULD BEAR IN MIND HOWEVER THAT THE CHINESE MAY TAKE A LOT OF CONVINCING THAT THEY

NEED TO COME OUT IN THE OPEN WITH FIRM STATEMENTS OF SUPPORT. YOU WILL BE AWARE THAT THE HONG KONG GOVERNMENT IS CURRENTLY SEEKING TO

PERSUADE THE CHINESE GOVERNMENT ALONG SIMILAR LINES AND THAT THE

CHINESE HAVE ALL THE AVAILABLE STUDIES TO GIVE THEM A COMPLETE

CONCEPT OF THE PROJECT AND ITS VIABILITY. THERE MIGHT THEREFORE BE ADVANTAGE IN SIR G MANZIE DELAYING ANY VISIT FOR SOME LITTLE WHILE, TO GIVE THE CHINESE A CHANCE TO ABSORB THOSE STUDIES.

5. SIR G MANZIE WILL ALSO NO DOUBT BE ALERT TO THE DANGER THAT THE

CHINESE MIGHT BE SUSPICIOUS OF HIS MOTIVES. ONE OF THEIR EXPRESSED FEARS ABOUT THE PROJECT IS THAT IT IS A DEVICE BEING USED BY THE BRITISH TO FEATHER OUR OWN NESTS BEFORE 1997 (A CHARGE THAT CAN BE COUNTERED BY POINTING OUT THAT AMERICAN COMPANIES HAVE GOT THE FIRST SIGNIFICANT CONTRACTS), AND MIGHT SEE PLEAS ON BEHALF OF THE PROJECT AS A WHOLE MADE BY A LEADER OF A BRITISH CONTENDER FOR

CONTRACTS WITHIN IT, AS CONFIRMATION OF THEIR SUSPICIONS.

6. I HAVE ALSO DISCUSSED THIS PROPOSED VISIT WITH THE GOVERNOR. HE

TOO IS CONTENT WITH THE PROPOSAL BUT SUGGESTS THAT ANY VISIT SHOULD BE DELAYED PERHAPS UNTIL THE LATE SUMMER OF EARLY AUTUMN (FOR SIMILAR REASONS).

7.

IN PEKING I CALLED ON ZHANG XUWU, VICE PRESIDENT OF CITIC, AND SOUNDED HIM OUT ON THE AIRPORT PROJECT. HE SAID IT WAS BEING STUDIED CAREFULLY. IT WAS TOO BIG AND TOO IMPORTANT A PROJECT TO MAKE ANY OFF THE CUFF COMMENTS MEANINGFUL. IT WILL BE CONSIDERED AT

THE HIGHEST LEVEL WITHIN CITIC. HE SEEMED TO BE AWARE THAT FULL

DETAILS HAD RECENTLY BEEN PASSED TO THE CHINESE AUTHORITIES BY THE HONG KONG GOVERNMENT.

8.

THE HEAD OF GEC HERE, JAMES CHIU, HAS ALSO JUST BEEN TO PEKING REPRESENTING THE HONG KONG INSTITUTE OF ENGINEERS. HE TOLD THE DIRECTOR OF THE HONG KONG AND MACAO OFFICE, JI PENGFEI, OF THE IMPORTANCE OF THE CHINESE GOVERNMENT SUPPORTING THE AIRPORT PROJECT AND RECEIVED THE REPLY THAT WHILE THEY RECOGNISED THE NEED FOR A NEW AIRPORT AND FAVOURED THE PROJECT IN PRINCIPLE, THEY WERE WORRIED THAT THE PROJECT WAS TOO LARGE AND TOO EXPENSIVE.

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