TNAG-2621-FCO40-3812-Visits-by-Alastair-Goodlad--Minister-of-State-for-Foreign-an-1992 — Page 34

CONFIDENTIAL

directly-elected seats needs to be got out of the way soon. The Minister's main point might be that this is just

the sort of issue on which the new Governor will want

to form a view, having consulted widely in Hong Kong; but

that we are very conscious of the need to clear up

uncertainties soon.

Airport Committee and Airport Contracts

5.

It is now clear that the Chinese have problems with aspects of the financing arrangements between HKG and the MTRC and Provisional Airport Authority.

It is

likely to be a topic top of the minds of the Governor (who visits Peking in early June) and the Chief Secretary, who steers the Airport Steering Committee. Things may have moved on by the time of our visit. But any political and press sniping about bias in the award of the Tsing Ma Bridge contract to the British led Anglo Japanese Consortium (AJC)

should be firmly rebutted: it is totally untrue. Hong Kong

British consulting firms have done well but we have not by any means won all the airport works contracts.

Privatisation/Corporatisation

6.

The Chinese are suspicious of all proposals to change the structure of government. They fear that these are part of a British strategy to sell off the family silver, or at

least weaken HKG's control over aspects of Hong Kong. They have therefore opposed corporatisation of RTHK: We have

consulted them on HKG's plans (which are justified on

RB3ACW/3

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