TNAG-2146-FCO40-3065-Hong-Kong-Port-and-Airport-Development-Strategy-(PADS)-1990 — Page 64

CONFIDENTIAL

HKC 182

12

346

042113

MDLOAN 7231

TOP COPY Q DIST?

På

PADS.

CONFIDENTIAL

FM FCO

TO PRIORITY HONG KONG

TELNO 2425

OF 21120OZ DECEMBER 90

AND TO PRIORITY LISBON, UKREP JLG HONG KONG

INFO ROUTINE BTC HONG KONG, PEKING

CONTACTS WITH THE PORTUGUESE OVER AIRPORT PROJECTS

1. BTC HONG KONG TELNO 001 TO LISBON AND LISBON TELNO 595 HAVE PROMPTED US TO CONSIDER WHETHER THERE MIGHT BE ADVANTAGE IN HAVING A SOMEWHAT CLOSER LIAISON WITH PORTUGUESE MEMBERS OF THE LUSO-CHINESE JLG, ABOUT THE AIRPORT PROJECT IN MACAU. WE DO NOT HAVE MUCH INFORMATION ON THIS PROJECT HERE. BUT IT DOES APPEAR TO US THAT THE PROBLEMS THE PORTUGUESE ARE NOW FACING COULD ALSO ARISE WITH HONG KONG'S NEW AIRPORT.

2.

FOR EXAMPLE IT SEEMS THAT SUPPLIES OF SAND FROM THE CHINESE MAINLAND HAVE CEASED. THIS PUTS AN INTERESTING LIGHT ON ANY CHINESE PARTICIPATION IN THE HONG KONG AIRPORT PROJECT. IF A CHINESE COMPANY WERE, FOR EXAMPLE, TO OBTAIN A CONTRACT FOR SUPPLYING THE AGGREGATE REQUIRED FOR THE AIRPORT PLATFORM AND WERE SUBSEQUENTLY MADE TO DELAY SUPPLIES, THIS COULD PUT IN JEOPARDY THE WHOLE TIMING OF THE AIRPORT. IT MIGHT THEREFORE BE USEFUL TO KNOW HOW, IN THE MACAU CASE, THE COMPANY CAME TO BID AND TO SUCCEED FOR THE PROJECT (FOR EXAMPLE DID IT HAVE OFFICIAL CHINESE BACKING QUERY). BTC HONG KONG TELNO 001 TO LISBON CLEARLY INDICATES THAT THE CHINESE HAD APPARENTLY GIVEN APPROVAL TO THE PROJECT IN PRINCIPLE. THIS TURNAROUND COULD THUS HAVE WORRYING IMPLICATIONS FOR HONG KONG.

3. THE PORTUGUESE HAVE ALSO HAD DIFFICULTY OVER ALLOCATING SUFFICIENT LAND IN THE LAND COMMISSION. THIS IS A PROBLEM THAT WE MAY WELL YET FACE. IT MIGHT BE USEFUL TO KNOW HOW THE PORTUGUESE ARE HANDLING THE PROBLEM AND WHAT STEPS THEY HAVE TAKEN TO CIRCUMVENT IT.

4. WE SHOULD BE GRATEFUL FOR YOUR VIEWS AND THOSE OF COPY ADDRESSEES ABOUT WHERE AND HOW WE MIGHT APPROACH THE PORTUGUESE FOR A FULLER DISCUSSION OF THESE ISSUES. IT WILL BE IMPORTANT TO ENSURE A LOW PROFILE AND AVOID AROUSING CHINESE SUSPICIONS THAT WE ARE COLLUDING AGAINST THEM.

5. ON A WIDER SCALE WE WONDER WHETHER YOU AND UKREP JLG SEE ANY MERIT IN MORE GENERAL CLOSER CONTACTS WITH THE PORTUGUESE TO

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