CONFIDENTIAL
巡
033642
MDHIAN 7719
Redacted under FOI Exemption S 27 (1):
7. THE CHINESE MAY WELL ARGUE THAT WE SHOULD PUT OUR WHOLE PROGRAMME ON ICE UNTIL THEY QUOTE TAKE A DECISION UNQUOTE. WE CANNOT BE SURE WHEN THAT WILL BE. IT MAY NOT NECESSARILY BE AFTER THE NEXT ROUND AND, ON PAST PERFORMANCE, COULD TAKE SEVERAL MONTHS. IN THE MEANTIME, I CONTINUE TO BELIEVE THAT WE WOULD DO OURSELVES GREAT DAMAGE IN THE EYES OF THE LOCAL AND INTERNATIONAL BUSINESS COMMUNITY IF IT WERE PERCEIVED THAT WE COULD ONLY GO AHEAD WITH PEKING'S APPROVAL. HOWEVER IMPORTANT IT MAY BE TO THE ULTIMATE SUCCESS OF THE PROJECT, AND TO CARRYING IT OUT COST- EFFECTIVELY, TO HAVE CHINESE SUPPORT RATHER THAN CRITICISM, THE MESSAGE THAT CHINA HAD BROUGHT A LOCAL DEVELOPMENT PROJECT TO A HALT WOULD BE A VERY SEVERE BLOW TO ALL THE ARRANGEMENTS IN THE JOINT DECLARATION FOR HONG KONG'S ECONOMIC AUTONOMY. WE MUST TRY
TO MOVE FORWARD IN A NON-PROVOCATIVE WAY IF WE CAN: BUT WE MUST ALSO BE PREPARED TO STAND FIRM AGAINST PRESSURE TACTICS FOR ENDLESS DELAY AND TO TAKE SOME FLAK IN THE PROCESS.
8. YOU SHOULD ALSO BE AWARE THAT WE WILL NOT NOW PUT ANY SPECIFIC
PROPOSALS TO THE LAND COMMISSION BEFORE HOLDING FURTHER TALKS
WITH THE CHINESE.
9. LOOKING AHEAD, WE HAVE BEEN GIVING THOUGHT TO MOVES ON OUR PART WHICH WOULD PROVIDE AN OPPORTUNITY FOR THE CHINESE TO CLAIM THAT AS A RESULT OF CONSULTATIONS, MODIFICATIONS HAD BEEN MADE IN OUR PLANS AND THUS TO EXPRESS SUPPORT FOR THE NEW PLANS. ALTHOUGH
IT WILL BE TOWARDS THE END OF THE YEAR OR EARLY NEXT YEAR BEFORE WE WILL BE CLEAR PRECISELY WHAT MIGHT BE OFFERED, THESE QUOTE CONCESSIONS UNQUOTE COULD INCLUDE A DELAY OR SCALING DOWN OF THE AIRPORT RAILWAY (WHICH MAY NOT BE ABSOLUTELY NECESSARY FOR THE INITIAL VOLUME OF TRAFFIC), AND EITHER A QUOTE DELAY UNQUOTE IN THE TIMETABLE FOR THE SECOND RUNWAY (WHICH WILL NOT BE BUILT IN ANY CASE UNTIL AFTER 1997) OR DEFERRAL OF THE LANDFILL WORK FOR IT (ALTHOUGH IT IS MORE LIKELY TO BE COST EFFECTIVE TO UNDERTAKE ALL THE LANDFILL WORK TOGETHER).
10. THERE IS ALSO THE POSSIBILITY (PARA 5 ABOVE) OF SLIPPING THE WHOLE PROGRAMME FOR OPENING THE AIRPORT. THIS WOULD BE A MAJOR STEP, AND MIGHT GIVE THE CHINESE STRONGER GROUNDS TO ARGUE FOR A GREATER SAY IN DECISIONS BETWEEN NOW AND 1997. BUT, IF IT BECOMES NECESSARY ANYWAY IN TERMS OF BUILDING FLEXIBILITY INTO THE
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