345
HKC 182 / 2
18212
FROM:
R JT McLaren
DATE:
20 December 19
Cc: Mr Burns
Mr Williams, SAD
Paul,
Mr Paul, HKD
1.
Mr Williams and I lunched today with Mr Dereham, a Director of Chartered WestLB Limited, who was supported by two colleagues, Peter Godwin (Chairman of the Anglo-Taiwan Trade Committee among other things) and Jim Young. Much of the conversation was about India, including the prospects for RIHAND II; Mr Williams will be recording it. We also had some talk about PADS (Chartered WestLB were unsuccessful in their bid, with a partner for the overall financial consultancy). Our hosts were fairly gloomy about the prospects, beginning by asking me whether I thought the project would go ahead. I explained the present Chinese attitude, including the fact that they accepted the need for a new airport and were now persuaded that it should be at Chep Lap Kok. They remain to be convinced of the financial case but the Hong Kong Government would be sending a team to Peking to deal with their concerns. I was optimistic that the Chinese would eventually come out in support. Mr Young said that the thing most likely to persuade Western banks would be participation by the Bank of China in PADS related loans, but even then there would be a problem since most banks would regard loans due to be repaid after 1997 as China risk. I pointed out that this would not be entirely logical since the future SAR would be financially autonomous and would repay loans from its own tax revenues.
of
RJT MCLAREN
NOVABN
•Rq2/1
Miss Marsson or
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Pa
7/1
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