SECRET AND PERSONAL
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Defence File.
and a Japanese firm were well placed to win the contract for the fixed link for the airport.
The Prime Minister asked about the site for our Consulate- General. The Governor said he would shortly be putting a proposal to EXCO to provide a site free of charge. He thought he could get this through, taking advantage of the positive climate created by the passage of the nationality package. The Prime Minister commented that we should start to build on the site as soon as possible.
She would like to have a talk with the Chairman of HKSB at an early.opportunity. I should be grateful if you could let me - know when he is likely to be over here, perhaps in September.
The Governor enquired about the implications of the study of future cptions for our defence for the Ghurkas in Hong Kong. The Prime Minister said that we could not allow the Hong Kong commitment to be changed, or forces run_down beyond what had already been agreed for the period between now and 1997. She would be absolutely firm on that point.
The Prime Minister concluded by complimenting the Governor once more on his success in getting Hong Kong back into a calmer and more positive frame of mind. It would be a mistake to be over-optimistic about the future. But he had succeeded in lifting the colony out of last year's slough of despond. The Governor said the great question was the timing of change in Peking. He very much hoped that it would happen before 1994-95. Otherwise the final years. of British administration would be very difficult.
I am copying this letter to John Gieve (HM Treasury) and Simon Webb (Ministry of Defence).
Stephen Wall, Esq.,
Foreign and Commonwealth Office
ক
CHARLES POWELL
SECRET AND PERSONAL
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