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and was acceptable to all.

Someone had been sent to report on

the matter to the State Council. Mr Zhang said that he had not

informed the Hong Kong authorities previously because there had

been no decision on the location and final approval of the

project was still outstanding

9.

Mr Clift thanked Mr Zhang for the helpful

explanation. He told Mr Zhang that the Hong Kong Government

was thinking of expanding or replacing Kai Tak airport.

Projections showed that Kai Tak could be used until just after

the turn of the century. Some expansion of taxiing and parking

space however would be required. It was known that Kai Tak

could not cope for ever and various alternatives including Chek

Lap Kok were being considered.

Hong Kong would need a

replacement airport near to its urban centres. Hong Kong

recognised the importance of keeping the Chinese informed of

major developments.

10.

Mr Zhang said he had noticed in the newspapers that

the Hong Kong Government was looking at the proposals made by

Li Ka Hsing and Gordon Wu. Mr Clift explained that a committee

chaired by the Chief Secretary was studying the implications of

their proposals which included road and port developments as

well as the airport.

11.

Mr Zhang said he understood Mr Clift had raised the

problem of the vegetable supply to Hong Kong with Mr Zu

Guozhen. Mr Zhang stated that Shenzhen's policy had been

CONFIDENTIAL #

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