TNAG-2292-FCO40-3304-Official-visits-from-Hong-Kong-to-China-1991 — Page 124

CONFIDENTIAL

6733

MDHIAN 0570

4.

VINCENT LO WAS CRITICAL OF THE BRITISH SIDE FOR THE POSITION IT HAD ADOPTED ON CONSULTATION WITH THE CHINESE. WE SHOULD LOOK FOR A COMPROMISE PERHAPS BY SEPARATING THE QUESTION OF CONSULTATION ON GENERAL ISSUES FROM THAT ON AIRPORT RELATED ISSUES. CITING CHINESE ASSURANCES ABOUT NON-INTERFERENCE IN THE DETAILS OF INDIVIDUAL PROJECTS, LO THOUGHT TAHT CONSULTATION SHOULD NOT BE TOO BIG A PROBLEM ANYWAY.

5. LO AND HIS COLLEAGUES ALL THOUGHT IT IMPORTANT THAT THE AIRPORT SHOULD GO AHEAD. IT WOULD BE A MAJOR BLOW TO CONFIDENCE IF THE PROJECT WAS SHELVED. THERE WAS SOME DISCUSSION AMONG THE DELEGATION ABOUT WHAT MIGHT BE DONE IF THE CONSULTATIONS WITH THE CHINESE DID NOT RESULT IN AGREEMENT. LO SUGGESTED THAT A PRIVATE SECTOR CONSORTIUM LED, FOR EXAMPLE BY LI KASHING MIGHT PERSUADE DENG XIAOPING TO ALLOW THE AIRPORT PROJECT TO GO AHEAD IMMEDIATELY, COMMENTING THAT ONCE DENG SPOKE, HIS WISHES WOULD BE CARRIED OUT.

6. LO, STRONGLY SUPPORTED BY THE OTHER MEMBERS OF THE DELEGATION, WARNED THAT THE BRITISH SIDE WAS LOSING THE PROPAGANDA BATTLE. THE MAN IN THE STREET HAD BEEN CONVINCED THAT

CHINA HAD THE INTERESTS OF THE FUTURE SARG AND THE INHABITANTS OF HONG KONG AT HEART, AND THAT HKG DID NOT. PEOPLE WERE WORRIED ABOUT POSSIBLE TAX INCREASES CAUSED BY THE HIGH ESTIMATED COST OF THE AIRPORT. HKG SHOULD LAUNCH A VIGOROUS PR CAMPAIGN IN RETURN, SETTING OUT CLEARLY HOW THE AIRPORT WAS EXPECTED TO BENEFIT HONG KONG, HOW MUCH INCOME COULD BE EXPECTED AND WHEN, AND OTHER ADVANTAGES SUCH AS IMPROVED INFRASTRUCTURE. WHILE THIS INFORMATION WAS IN THE PUBLIC DOMAIN ALREADY IT WAS NOT IN A FORM

ACCESSIBLE TO ORDINARY HONG KONG PEOPLE AND SHOULD BE EXPLOITED

TO COUNTER THE CHINESE CAMPAIGN.

7. I SOUGHT TO PROVIDE THE DELEGATION WITH ARGUMENTS TO USE AT

THEIR MEETING WITH LU PING AND OTHER MEMBERS OF THE HONG KONG AND MACAO OFFICE ON 11 JUNE. THEY WOULD BE LISTENED TO AS BUSINESSMEN WHO TOOK THEIR DECISIONS ON COMMERCIAL GROUNDS. THEY SHOULD TRY TO COUNTER THE VIEW THAT THE BRITISH AND HONG KONG GOVERNMENTS WANTED THE AIRPORT SO BADLY THAT THEY WOULD PAY ANY PRICE FOR IT. THEY SHOULD KNOW THAT THIS WAS NOT THE CASE.

MCLAREN

YYYY

2

PAGE

CONFIDENTIAL