CONFIDENTIAL
05400 MDLIN 7797
BY THE HONG KONG GOVERNMENT TO GET THE CHINESE GOVERNMENT TO ENDORSE THE PROJECT. I WILL DISCUSS THIS WITH SIR ALAN DONALD AND CHAPMAN WHEN IN PEKING FROM 3 TO 7 MAY, AND IF OPPORTUNITY ARISES WILL ALSO RAISE IT WITH ANY APPROPRIATE CALLS ON CHINESE OFFICIALS DURING THE VISIT. I WILL ALSO DISCUSS WITH HMA AND CHAPMAN THE PROPOSED VISIT BY SIR G MANZIE AND POSSIBLE CALL ON LI PENG WITH A VIEW TO GIVING YOU COMBINED ADVICE IN RESPONSE TO YOUR TUR WHILE I AM THERE. I HOPE TO DISCUSS THE POINT WITH THE GOVERNOR (FINAL SENTENCE OF YRTUR) BEFORE LEAVING FOR PEKING.
FINANCIAL CONSULTANCY
4. OFFICIALS CONCERNED WITH THE PROJECT TELL US THAT KLEINWORT BENSON HAVE BEEN SELECTED FOR THE FINANCIAL CONSULTANCY FOR THE LANTAU FIXED LINKS ALTHOUGH THIS HAS NOT YET BEEN ANNOUNCED. WE ARE TRYING TO CONFIRM THIS. WE HAVE PREVIOUSLY UNDERSTOOD THAT THAT CONSULTANCY WAS TO BE COMBINED WITH THAT COVERING THE RAIL LINK AND POSSIBLY ALSO WITH THAT COVERING THE OVERALL FINANCIAL ASPECTS.
PRESS COMMENT
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5. MEANWHILE PRESS ARTICLES HAVE CONTINUED TO RAISE SOME QUESTION MARKS ABOUT THE PROJECT. THE SOUTH CHINA MORNING POST IN AN EDITORIAL OF 26 APRIL, HEADED AIRPORT PLAN GIVES CHINA A LEVER ON HONG KONG', BEGAN THE REPLACEMENT AIRPORT PROJECT WAS PRESENTED LAST OCTOBER AS A KEY ELEMENT IN BOOSTING CONFIDENCE IN HONG KONG'S LONG TERM FUTURE, BUT THERE ARE WORRYING SIGNS THAT IT IS BECOMING A CROSS FOR THE GOVERNMENT TO BEAR'. IT STRESSED THE IMPORTANCE OF GETTING CHINA'S SUPPORT AND THE DAMAGE TO HONG KONG'S CONFIDENCE AS WELL AS TO ITS PROSPERITY THAT CHINA COULD INFLICT BY WITHHOLDING IT. THE EDITORIAL ENDS THE LONGER CHINA WITHHOLDS ITS BLESSING THE GREATER THE PRESSURE ON THE HONG KONG GOVERNMENT. CHINA CAN SAY... THAT IT REMAINS UNCONVINCED ... THAT THE AIRPORT ESSENTIAL TO ENSURE THE TERRITORY'S CONTINUED PROSPERITY. EFFECT WOULD BE TO GIVE CHINA A LEVER TO USE WHICH WOULD BE VERY POWERFUL IN POLITICAL TERMS'. THE HONG KONG STANDARD HAS FEATURED AN ARTICLE BY A FORMER URBAN COUNCILLOR AND RETIRED BUSINESSMAN, WALTER SULKE, THAT SAYS THE AIRPORT PLAN IS ILL CONCEIVED AND COUNTER PRODUCTIVE IN RESTORING CONFIDENCE UNDER THE HEADING 'WE'RE FLYING INTO TROUBLE WITH AIRPORT PLAN.' THE ARTICLE ADVOCATES BUILDING AN AIRPORT IN SHENZHEN AND NEGOTIATING A BORDER AGREEMENT WITH CHINA, AND THAT HONG KONG MEANWHILE SHOULD FILL IN MORE LAND AT KAI TAK AND PUT IN A SECOND RUNWAY THERE. THE ARTICLE STRESSES THE DIFFICULTY IN RAISING THE SUMS REQUIRED FROM THE PRIVATE SECTOR FOR THE CHEK LAP KOK AIRPORT PROPOSALS.
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