TNAG-2259-FCO40-3255-Hong-Kong-Port-and-Airport-Development-Strategy-(PADS)-Brit-1991 — Page 135

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MDHIAN 1273,

CAREFUL HANDLING. AN APPROACH COULD BE HANDLED AT ONE OR MORE

OF THE FOLLOWING LEVELS:

(A) OUR SECRETARY OF STATE COULD BE INVITED TO SEND A MESSAGE TO HIS COUNTERPART.

(B) THE POST COULD APPROACH MITI, EITHER THROUGH HMA CALLING ON A SUITABLE OPPOSITE NUMBER OR AT SOME OTHER LEVEL.

NO DOUBT OTHER VARIANTS OR COMBINATIONS ARE POSSIBLE: FOR EXAMPLE HMA COULD PERHAPS DELIVER A MESSAGE FROM THE SECRETARY

OF STATE ON A CALL.

·

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(I)

BUT THERE ARE ALSO DANGERS TO BE BORNE IN MIND:

THERE ARE REAL ISSUES OF CONFIDENCE HERE, AND WE MUST AVOID ANY SUGGESTION THAT WE ARE WORRIED ABOUT THE STRENGTH OF

THE AJC COMPARED TO THE JAPANESE COMPETITION.

(II) WE PRESUMABLY NEED TO AVOID ANY SUGGESTION THAT THE

UK IS IN ANY WAY APPEARING TO UNDERWRITE THE PROVISION OF JAPANESE EXPORT CREDIT. WHILE WE DO NOT WANT TO RAISE DOUBTS IN JAPAN ABOUT OUR OWN POSITION ON EXPORT CREDIT, WE MUST BEAR IN MIND THAT OUR POSITION IS NOT YET CLEAR. (III)

IT IS DIFFICULT TO ASSESS THE POSITION IN RELATION

TO THE ALL JAPANESE CONSORTIUM WHICH IS ALSO PURSUING THE

LANTAU FIXED CROSSING CONTRACT. AT FACE VALUE THE ANGLO/JAPANESE CONSORTIUM COULD ARGUABLY BENEFIT IF ECGD EXPORT CREDIT IS AVAILABLE AND IF ADEQUATE JAPANESE EXPORT CREDIT IS NOT, SINCE THE ALL-JAPANESE CONSORTIUM WILL HAVE DIFFICULTY IN FORMULATING A REASONABLE FINANCIAL PACKAGE WITHOUT EXPORT CREDIT.

BUT PRESUMABLY IF JAPANESE EXPORT

CREDIT WAS TO BE MADE AVAILABLE TO THE JAPANESE CONSORTIUM, PRINCIPLES OF EVEN-HANDEDNESS WOULD IMPLY THAT IT SHOULD BE AVAILABLE TO THE ALL JAPANESE CONSORTIUM AS WELL. MITSUI ARGUE IN RESPONSE TO THIS THAT IT IS UNLIKELY THAT THERE WOULD BE HARM TO THE ANGLO/JAPANESE CONSORTIUM'S POSITION, AND THAT IT IS PROBABLE THAT THERE WOULD BE A CLEAR CEILING ON THE AVAILABILITY OF JAPANESE CREDIT WHICH WOULD CONSTRAIN THE ALL JAPANESE CONSORTIUM.

5. THERE ARE PERHAPS OTHER AREAS TO EXPLORE: FOR EXAMPLE TO CHECK THAT JAPANESE SUPPORT, IF AND WHEN AVAILABLE, WILL BE EXTENDED EVEN-HANDEDLY TO THE JAPANESE SIDE OF THE AJC AS WELL AS TO THE ALL JAPANESE GROUP. BUT THIS IS TRICKY: THERE IS OF COURSE MORE THAN A SUGGESTION THAT THE JAPANESE GOVERNMENT WOULD PREFER THE ALL JAPANESE GROUP TO WIN.

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