TNAG-2361-FCO40-3432-Visit-by-John-Major--UK-Prime-Minister--to-Hong-Kong--Septem-1991 — Page 196

CONFIDENTIAL

(a) The New Airport project: It would be counter-

productive to appear to exert pressure, but the Prime Minister might convey the forthright message to the Governor and other senior people in Hong Kong that he is delighted that the way is now open for progress with the airport project, that UK firms are pursuing opportunities vigorously and that he looks forward to UK firms playing a major role in the implementation of these plans.

(b) Black Point Power Station: This offers a major project opportunity for British companies. Decisions are at a critical stage and the Prime Minister could valuably confirm to Lord Kadoorie and Sir William Stones (MD of China Light and Power):

Point

that we believe a negotiated contract on Black

will continue the successful partnership achieved at the earlier Castle Peak power station (supplied by GEC and Babcock); and

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that ECGD are keen to support the project, working in the new scheme of control.

(c) ECGD Cover: If the subject is raised in

discussions with the Governor or other HKG officials, the Prime Minister could:

confirm that ECGD cover for Hong Kong is assessed separately from that for China, although all new commitments in markets where ECGD's exposure is

concentrated compete for cover within the Annual Global Business Budget;

CONFIDENTIAL