RESTRICTED
076415
RESTRICTED
FM PEKING
TO PRIORITY OVERSEAS TRADE DIVISION DTI
TELNO OTTER 262
OF 160058Z NOVEMBER 90
AND TO PRIORITY BTC HONG KONG
Pa
Alec 182 12
MDLIAN 7399
251
1235
DT I FOR PEP.
BTC HONG KONG FOR HEAP.
YOUR OTTER 303 TO BTC HONG KONG: HONG KONG AIRPORT.
1.
TUR PARA 3. COMMERCIAL COUNSELLOR BEN CHAPMAN LUNCHED WITH HUANG JICHUN, CITIC VICE-PRESIDENT RESPONSIBLE FOR OVERSEAS AND DOMESTIC INVESTMENT ON 29 AUGUST. AT THAT TIME, HUANG CAST DOUBTS UPON SOME OF THE ENGINEERING ASPECTS OF THE PROJECT (THE BRIDGE), UPON THE NEED (GIVEN THE PROXIMITY OF THE NEW SHENZHEN AIRPORT), AND UPON THE POTENTIAL PROFITABILITY OF THE WHOLE ENTERPRISE. WHEN PRESSED, HUANG WOULD SAY ONLY THAT CITIC WERE LOOKING INTO THE MATTER.
2. ON HIS ARRIVAL, CHAPMAN'S SUCCESSOR ALLAN KERFOOT WAS IN CONTACT WITH HUANG AND DISCUSSED HONG KONG AIRPORT WITH HIM ON
29 OCTOBER. HUANG AND SIDEKICK JING SHUPING WERE CRITICAL OF EVENTS IN HONG KONG AND MAINTAINED THAT CITIC NEEDED MORE INFORMATION BEFORE THEY COULD CONSIDER INVESTING. JING LUNCHED WITH GOVERNOR ON DAY DECISION TO PROCEED WITH FIXED LINK WAS ANNOUNCED AND WAS CLEARLY PUT OUT THAT GOVERNOR DID NOT MENTION THIS TO HIM. INCIDENT SEEMS TO HAVE CONTRIBUTED TO CITIC'S COOL
ATTITUDE.
3. IN OUR VIEW, CHINESE ARE AWARE THAT INVESTMENT BY CITIC WILO BE SEEN IN HONG KONG (AND ELSEWHERE) AS OFFICIAL CHINESE STAMP OF APPROVAL. CITIC WILL NEED WOOING, BUT THE PROCESS MAY PROVE POLITICALLY AS WELL AS FINANCIALLY WORTHWHILE.
COATES
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