TNAG-2259-FCO40-3255-Hong-Kong-Port-and-Airport-Development-Strategy-(PADS)-Brit-1991 — Page 111

CONFIDENTIAL

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15 NOV 1991

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SUMMARY

1.

ACTION AT OFFICIAL LEVEL BEFORE ECGD COVER SECURED WOULD BE PREMATURE. MITSUI SHOULD PAVE WAY WITH MITI. DOUBTS ABOUT THEIR COMMITMENT, AND SUSPICION OF JAPANESE CARVE-UP OF THE TWO BRIDGE CONTRACTS. OFFICIAL INTERVENTION AT A LATER STAGE OFFERED AS APPROPRIATE.

DETAIL

2.

THE AMBASSADOR TOOK THE OPPORTUNITY OF SIR GORDON MANZIE'S

VISIT TO JAPAN TO DISCUSS WITH HIM CON 13 NOVEMBER) WHETHER A FURTHER APPROACH TO THE JAPANESE GOVERNMENT WOULD BE USEFUL. SIR GORDON SHARED THE AMBASSADOR'S VIEW THAT ACTION OFFICIALLY AT THIS STAGE WOULD BE PREMATURE, WHILE THE QUESTION OF EXPORT CREDIT COVER FOR THE AJC BID IS STILL UNRESOLVED. THE AMBASSADOR MADE IT CLEAR HOWEVER THAT HE WOULD BE PREPARED TO GO TO MITI IN SUPPORT OF THIS IMPORTANT PROJECT SHOULD THIS SEEM TO BE APPROPRIATE AT A SOMEWHAT LATER STAGE.

3. WE THINK IT ESSENTIAL TO CONSIDER THE IMPRESSION WHICH ANY APPROACH WOULD MAKE ON THE JAPANESE. TO ASK MITI FOR SUPPORT OVER JAPANESE EXPORT CREDIT FOR AJC, OR AT LEAST FOR EVEN-HANDED SUPPORT AS BETWEEN AJC AND THE ALL-JAPANESE CONSORTIUM, BEFORE WE COULD POINT TO ECGD COVER COULD BE DIFFICULT. IT WOULD BE INFINITELY MORE CREDIBLE TO ASK THE JAPANESE TO SUPPORT THE AJC BID WHEN WE HAVE CONCRETELY DEMONSTRATED OUR OWN SUPPORT IN THE FORM OF ECGD

COVER. WE UNDERSTAND FROM SIR G MANZIE THAT THE AJC REQUEST IS

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