TNAG-2259-FCO40-3255-Hong-Kong-Port-and-Airport-Development-Strategy-(PADS)-Brit-1991 — Page 260

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From: R O Miles

Date: 2 August 1991

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FCO PS Secretary of State

PS Lord Caithness

PS PUS

Sir John Coles

Mr Burns

Head of Hong Kong Department

DTI PS Secretary of State

PS Minister for Trade

Mr Anisfeld

PS PUS

Mr Roberts

Mr Adams

Mr Meadway Mr Love

Mr Bayne

Hong Kong: Port and Airport Development Scheme (PADS)

This is probably the biggest opportunity currently open to British business. It is politically complex, and the political risks have been heightend by the forthcoming visit of the Prime Minister to Peking following the recent agreement with China. I took advantage of the Heads of Missions Conference in Hong Kong to discuss it with Mr Burns and Mr Adams, who lead on it in the FCO and DTI respectively, and also with Mr Heap and Sir Robin McLaren.

The main elements are well known:

Enormous scale (about £10 billion); the major participating companies will be seeded players at world level for years to come.

Generally poor UK performance in the Hong Kong market (though somewhat better in project work).

Refusal of the Hong Kong Government to favour British companies; at best a level playing field.

Question mark over large increase required in ECGD cover for Hong Kong.

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