TNAG-2258-FCO40-3254-Hong-Kong-Port-and-Airport-Development-Strategy-(PADS)-Brit-1991 — Page 49

CONFIDENTIAL

DIEU ST

for this project. We consider this to be very unlikely. Japan has been very ready in the OECD discussions to accept a ban on associated financing to richer markets and there is no history of Japanese concessional assistance to Hong Kong.

One aspect not addressed at the meeting on 26 April was ECGD cover. The Foreign Secretary does not want to go into this in detail now, but it will be important that if British companies win large contracts in the airport scheme, there should be adequate ECGD cover. He may need to revert to this nearer the time.

I am copying this letter to Jeremy Heywood

(HM Treasury), Martin Stanley (DTI), Suma Chakrabarti (ODA) and Sonia Phippard (Cabinet Office).

Ousever

J S Wall Esq

10 Downing Street

CONFIDENTIAL

is L Gass)

Private Secretary