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5. A minority opinion, espoused by Sir S Y Chung, favours a
joint venture with China siting the airport just across the
border at Shenzhen. He believes that this would be beneficial
to confidence in Hong Kong. There would, however, be practical
disadvantages eg over security, services, transport, air traffic
rights, which would be in the hands of the Chinese.
The sum
6. Mr Bremridge is concerned about the scale of investment
needed for the new airport and associated development, including
a Lantau bridge. He believes that without firmer assurances from
Peking about the future of Hong Kong it will be impossible to
get outside investors to take part in the project.
involved is certainly very large (possibly £3,000 million) but
it should not necessarily be impossible to attract investment
provided that at least indirect indications of Chinese benevolent
interest are obtained. One possible method would be some form
of Chinese financial collaboration.
Bank of England/Hong Kong relations
7.
During his fortnight with the Bank of England, Mr Bremridge
was impressed by the Bank's interest in getting closer relations
with Hong Kong. There was some concern about their lack of
information about the activities of the Hongkong and Shanghai
Bank, which acts in lieu of a central bank in the Territory.
The Bank is worried that at some stage a financial crisis in
Hong Kong might result in their being called in to bale the
Territory out. They feel that in these circumstances they are
entitled to more information.
Mr Bremridge has taken note of
these views but is reserving his judgement until he has been in
the job for some time.
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