TNAG-2785-FCO40-4004-Hong-Kong-UK-Parliamentary-and-other-interest-in-constitutio-1993 — Page 42

15-MAR-MON 28:38 1:TIM BOSWELL - AINHO FAX NC:0869 811039

FAX NO:0327 318263

'-MAR-'93 SUN 14:07

ID:DAVENTRY CONS ASSN

TO

FAX NO.

:

FLEXIFRAME

Conservative Party Administration Office

0327 310263

ATTN.

Tim Boswell

FROM

:

Jon Lougee

FADES

:

1

DATE

REF

:

12 March 1993

P01

#60E F21

Dear Tim

I must express my concem over the Government's handling of the situation in Hong Kong. Chris Patten has minimal experience and understanding of negotiating in Asia; by breaking agreements already in place with The People's Republic of China, he la simply gambling not only with the future of Hong Kong but also UK exports to PRC. Working with one of the newly privatised Water Companies, we are at an advanced stage of negotiations with a major Municipality in PRC for a water treatment works which will be supplied under a 20 year "Build, Own, Operate and Transfer (BOOT) scheme. Having seen the way in which the Chinese reacted to the French over an arms deal, I am extremely nervous that this £50 million contract could be seriously jeopardised by the ineptness of Chris Patten's negotiating abilities. Please understand that if there is any suggestion that the success of this project could be jeopardised, we shall have no hesitation in taking the supply element of the contract out of the UK and working with a water company from another country.

I should be grateful if you would make my feelings known to the Foreign Office.

With kind regards.

Jon Lougee