INFORM
Appendix 1
IUN
RESTRICTED
FM HONG KONG 130445Z JUL 84
TO PRIORITY F C O
TELEGRAM NUMBER 1917 OF 13 JULY
INFO PRIORITY DTP
500
COMMS OFFICE REG Nu. u.T.R. 13TH JULY 1984 1245 D.T.D. 13TH JULY, 1984 1311
Actica
DTP FOR BOONHAM
V
IL TE
YOUR TELNO 1271: VISIT OF JONES/HKIA USER CHARGES POLICY.
1900
FURTHER TO PARA 3 OF OUR TELNO 1900 THE POINTS JONES WILL WISH TO
DISCUSS INCLUDE THE FOLLOWING
(A) IS THE EXTRACTION OF A REASONABLE RATE OF RETURN BASED ON
THE VALUE OF THE AIRPORT ASSETS TO GENERAL GOVERNMENT REVENUE
ACCEPTABLE WITHIN THE INTERNATIONAL GUIDELINES (EVEN THOUGH THE
AIRPORT IS NOW EFFECTIVELY DEBT-FREE)? OUR CONTENTION THAT THE
COMMUNITY HAS CAPITAL LOCKED UP IN THE AIRPORT FROM WHICH IT CAN
EXPECT A ''REASONABLE' RETURN APPEARS TO BE ACCEPTABLE. SUCH A
RETURN SHOULD IN PRINCIPLE BE EQUALLY ACCEPTABLE IN RESPECT OF A
GOVERNMENT-OWNED AS A PRIVATELY-OWNED AIRPORT. POINT X OF THE DTP
LETTER OF 16 MARCH APPEARS TO SUPPORT THIS, BUT WE WOULD BE
GRATEFUL FOR CONFIRMATION.
(B) IS IT IMPLICIT IN POINT VIIA OF THE DTP LETTER THAT CHARGES MAY
BE FROZEN AT THEIR PRESENT LEVELS IN REAL TERMS? LOOKING AT POINT
VIIB THE ANSWER WOULD APPEAR LOGICALLY TO BE IN THE AFFIRMATIVE,
BUT AGAIN CONFIRMATION IS SOUGHT.
11
TED
(C) IF WE WERE....