CONFIDENTIAL
064142
MDHIAN 0260
I THINK YOU JUST SAID YOU TOLD THE CHINESE ABOUT THE AIRPORT BECAUSE IT WAS IN THE GOVERNOR'S SPEECH. PRESUMABLY, IN THE SAME WAY AS IN THAT CASE, YOU TOLD THEM ABOUT THE MOVING OF THE NAVAL-BASE BECAUSE THAT WAS IN THE GOVERNOR'S SPEECH. DID YOU DO SO AND WERE THERE ANY
OBJECTIONS RAISED?
CHIEF SECRETARY:
AS I'VE SAID TO YOU, THIS IS A MATTER WHICH IS CURRENTLY UNDER DISCUSSION IN THE JOINT LIAISON GROUP AND I'M SURE YOU WOULD NOT
EXPECT ME TO DISCLOSE THE CONTENTS OF THOSE DISCUSSIONS.
JOHN ELLIOT (?), FINANCIAL TIMES:
DOES THAT MEAN YOU HAVE NOT GOT AGREEMENT FROM THE CHINESE?
CHIEF SECRETARY:
IT MEANS EXACTLY WHAT I'VE SAID.
((UNIDENTIFIED REPORTER):
SIR DAVID, AS WE ALL KNOW, ALMOST EVERYONE IN THE COMMITTEE (?) HAS THE FEELING OF SOME KIND OF POLITICAL UNCERTAINTY ABOUT THEIR FUTURE. SO HOW ABOUT THE GOVERNMENT, TO ENSURE THAT INVESTORS AND DEVELOPERS TO JOIN IN THIS AMBITIOUS PLANNED PROJECT WITHOUT BEING AFFECTED BY THESE POLITICAL UNCERTAINTIES?
CHIEF SECRETARY:
I'D LIKE TO ANSWER THAT IN A GENERAL WAY. WHENEVER LARGE-SCALE INVESTMENT IS MADE BY COMPANIES IN THE PRIVATE SECTOR, THEY TAKE ON BOARD AS ONE OF THE FACTORS, A DEGREE OF POLITICAL RISK BEFORE THEY MAKE THEIR JUDGMENT. AND CLEARLY, THAT WILL BE THE CASE IN HONG KONG, TOO, THAT PEOPLE WILL MAKE THEIR OWN JUDGEMENTS ABOUT THE POLITICAL RISK. BUT THEY WILL ALSO BE SEEING IT AGAINST THE BACKGROUND OF THE WIDER STRATEGIC PICTURE OF HONG KONG, OF THE DEVELOPMENT OF THE ECONOMY OVER THE PERIOD OF THE LAST TWENTY, THIRTY YEARS, WHEN THERE HAVE BEEN UPHEAVALS IN CHINA, AGAINST THE FUTURE WHICH IS PERHAPS UNIQUELY INSCRIBED IN A DOCUMENT DESCRIBING WHAT THE POLITICAL SYSTEM WILL BE HERE IN HONG KONG. VERY FEW PLACES IN THE WORLD CAN AN INVESTOR LOOK TO THE FUTURE AND SAY THIS IS THE SORT OF POLITICAL SYSTEM THAT WILL BE IN PLACE TWENTY YEARS FROM NOW.
FORD
YYYY
4
PAGE
CONFIDENTIAL