CONFIDENTIAL
Secretary of State thanked him for his and Japan's support when they last met on July 1990.
E
F
PADS
13. The Governor announced PADS in his October 1989 policy speech. The strategy comprises two distinct areas:
(i)
an extensive port development, estimated to cost HK$50 billion (£3.3 billion) which will be almost entirely privately funded
and dependent on demand; and
(ii) a replacement airport and a number of related infrastructure
projects, estimated to cost HK$77 billion (£5.1 billion), necessary to link the airport with the rest of Hong Kong.
14. It is planned that the first runway of the airport should be
operational by January 1997.
15. Overt Chinese support for the project is becoming increasingly important as potential international investors are waiting to see the Chinese reaction before committing themselves. The comments by Premier Li Peng during Mr Maude's visit to China in July that Hong Kong needed a replacement airport were therefore important. However the Chinese have continued to express concern over the costs and are still studying this aspect. Chinese thinking on PADS would be influenced if the Japanese were to lend their voice to the need for
a replacement airport. They have done this and further
encouragement to do so would be appropriate.
16.
British interests in the various projects are considerable. There have been some notable successes in winning consultancy contracts (list attached). There are also consortia with British
interests bidding for elements of the construction. HMG is strongly backing the Anglo/Japanese consortium (AJC) which is bidding for a major part of fixed link (bridge). Mr Nakayama may wish to be
reassured of HMG's commitment to the consortium and our wish to see
it succeed. A pre-emptive bid by the consortium could succeed but
No comments yet.
Private notes are available after approval.