TNAG-2250-FCO40-3233-Hong-Kong-police-patrol-boats-1991 — Page 25

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dti

the department for Enterprise

CONFIDENTIAL AND PERSONAL

political commitment from the UK during the run up to 1997.

The Governor responded by noting our political difficulties

but added that he had his own which required contracts to be

allocated strictly on a value for money basis.

7.

I propose to monitor developments closely. It could well

be appropriate to take this issue up further with the

Governor; indeed, given her past interest in the project, I

believe the Prime Minister might well wish to intervene. The

best timing for any further interventions will be difficult to

judge. It will be counter-productive to convey repeatedly the

same message well in advance of the award of contracts;

conversely, it would of course be too late if a firm decision

had been made to award too many major contracts elsewhere.

You are yourself considering a visit to Hong Kong early next year, and this could be very timely in relation to the airport

project and the fixed link contract in particular.

Meanwhile,

I have asked officials to keep me well informed about

developments.

8.

Both the Governor and the Chief Secretary raised with me

the question of ECGD cover. It was emphasised that for key

CONFIDENTIAL AND PERSONAL

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