2
One of
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the department for Enterprise
5.
Blame for the breakdown over the airport does not lie only with the Chinese. I found self-criticism within the HK Administration and doubts outside it in the British and Chinese business community. The latter particularly question the cost. But the dialogue with the Chinese does now seem to be on a more sensible basis. Tough negotiations do however lie ahead and the timetable could slip further. The Governor is determined to keep to September for awarding the main Tsing Ma suspension bridge contract if he can.
6.
The Governor emphasised the confidentiality of what he had told us about his talks with the Chinese and I will be circumspect in briefing British companies. Your visit to Hong Kong valuably brought home to the Governor the Ministerial interest in awards for the airport project. You may wish to see him sometimes when he visits Britain. For his part he said that he hopes you will pick up your lost days in Hong Kong as soon as possible. If you can it will help British bidders.
1.
The Governor asked about ECGD. I explained that the Treasury continued to press for China and Hong Kong risk to be combined but that we and the FCO opposed this. Sir David commented that such a move could prove fatal for British companies bidding in Hong Kong and would also be bad for Hong Kong confidence. Mr Purves, Chairman of the Hongkong and Shanghai Bank, made the same point to me whilst accepting that the international banks were tending to take the Treasury view. This is an issue that will almost certainly have to go to Ministers for resolution.
C.C.W. Adams
C C W ADAMS
Redacted under FOI exemption 27(1)|
888-356
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