6.
The PAA have issued, as a basis for discussion with prospective licensees, a series of detailed licence conditions,
some of which have provoked a hostile reaction from bidders. Swires have been particularly critical, and decided to air their views in public before discussing them with the PAA.
7. The PAA were surprised at the strength of the reaction. They admit that some of the conditions proposed are severe but had proposed them only as the opening position in what they expected to be a series of low-profile discussions with the
bidders.
8. The situation has improved since Mr Sutch wrote to the
Governor on 29 October. The PAA have discussed the proposed conditions with prospective bidders and have modified their
position on the issues of greatest concern to Swires. The PAA Board will consider the matter further at their meeting on 29
November.
9.
The HKG have avoided being drawn into what is an important
and complicated commercial negotiation between a public corporation and its prospective licensees. They have, however, given advice to to the PAA privately.
B 10.
A copy of the Governor's reply to Mr Sutch is attached.
A
N C G Whitney
prov.min.ADM
SLM
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