2
dti
the department for Enterprise
5.
Thirdly the key to the post-1997 period must surely still be the nature of the Chinese Government at that time. Their current attitude, epitomized by their critical approach to the airport project, inevitably makes Hong Kong more jittery than usual. And when the Peking leadership looks at a dissolving Soviet Union and a seemingly subversive Hong Kong this must reinforce their current dreary conservatism.
But all that I heard in Hong Kong and from my dealings here with visiting Chinese trade officials suggests that this simply has to change. For all their reversion to more centralised planning, they are letting in modern technology, exchanging students and talking more freely than they were 10 years ago. You are much better placed to judge than I the pace at which these developments will help Hong Kong. But much can happen in 6 years.
6.
Finally a thought on the airport. When I had lunch with Norman Thompson recently he remarked that, from his experience with the Exhibition Centre and the Eastern Harbour Crossing, he was convinced that the PADS project could be developed as a private sector venture financed by property development and a reasonable toll regime. He had discussed it with CITIC and they were interested in participating. Hong Kong interests like New World and LiKa Shing's property companies would be lead investors. I said that, if such an approach was adopted, we would hope to see British companies involved as investors in a modest way (and of course as contractors and equipment suppliers). The Japanese and others should also be encouraged to join in. I added that the interaction with Hong Kong Government Departments and related infrastructure would be complex but manageable and Bechtel would have a vital role.
7.
I realise that this is a subversive proposition and would delay the project by six months or so. However if the Chinese continue to damage vital aspects of the project it could provide a solution. It would reduce the call on Hong Kong's reserves, meet the criticism of Hong Kong businessmen (Gledhill, Murray, Wu etc) and of the Chinese that the existing PADS is too expensive and bring in the Chinese as investors. It would also remove from Government much of the
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