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GOVERNMENT.
13. A VICE-DIRECTOR OF THE NCNA HK BRANCH, ZHANG JUNSHENG, SAID THAT IF THE HK GOVERNMENT HAD MADE MORE CONTRACTS WITH THE CHINESE ON THE AIRPORT PROJECT, DISPUTES OVER THE PROJECT WOULD NOT HAVE ARISEN. CHINESE VICE-FOREIGN MINISTER TIAN ZENGPEI SAID THAT IF THE QUESTION OF THE HK NEW AIRPORT WAS PROPERLY HANDLED, IT WOULD BENEFIT HK'S STABILITY AND PROSPERITY. A SENIOR CHINESE OFFICIAL WAS QUOTED BY ATV AND A FEW PAPERS (14.12) AS SAYING THAT THE CHINESE HAD NO OBJECTION TO THE LOCATION OF THE NEW AIRPORT BUT WERE WORRIED ABOUT THE SIZE AND THE FINANCIAL COMMITMENTS OF THE PROJECT. HE PROPOSED THAT THE SCALE OF THE PROJECT SHOULD BE REDUCED AND THAT THE AIRPORT'S CONSTRUCTION SHOULD BE BUILT IN PHASES AND EXTENDED BEYOND 1997. THE SENIOR REPRESENTATIVE OF THE CHINESE TEAM ON THE JLG, GUO FENGMIN, WAS QUOTED (16.12) AS EXPRESSING WORRY THAT THE FINANCIAL BURDEN CREATED BY THE AIRPORT WOULD BE SHIFTED TO HK RESIDENTS.
14.
SECRETARY OF THE TREASURY HAMISH MCLEOD SAID THAT THE GOVERNMENT WOULD USE THE RESERVES FOR THE INFRASTRUCTURAL PROJECTS BUT THAT ANY DRAWING FROM THE EXCHANGE FUND WOULD NOT UNDERMINE THE STABILITY OF THE HK DOLLAR. PRINCIPAL ASSISTANT FINANCIAL SECRETARY DENISE YUE SAID THAT THE GOVERNMENT PRESENTLY HAD MORE THAN DOLLARS 70 BILLION OF RESERVES, THAT PART OF THEM WERE PUT IN THE EXCHANGE FUND, AND THAT WHEN THE GOVERNMENT USED THE RESERVES, IT WOULD DRAW ON THIS PART WHICH HAD NOTHING TO DO WITH THE EXCHANGE FUND. A SENIOR HK GOVERNMENT OFFICIAL SAID THAT THERE WAS NO NEED FOR LU PING TO OPENING EXPRESS HIS WORRIES OVER THE EFFECT OF USING THE FISCAL RESERVES ON THE STABILITY OF THE HK DOLLARS AND THAT THE GOVERNMENT COULD EXPLAIN WHAT THE EXCHANGE FUND WAS ABOUT WITH TWO SHEETS OF PAPER. SECRETARY FOR MONETARY AFFAIRS DAVID NENDICK WAS QUOTED AS SAYING THAT WITHDRAWAL OF THE FISCAL RESERVES FROM THE EXCHANGE FUND WOULD NOT AFFECT THE STABILITY OF THE HK DOLLAR AS THE HK GOVERNMENT STILL HAD OTHER MEANS TO SUPPORT THE CURRENCY. SECRETARY FOR ECONOMIC SERVICES ANSON CHAN SAID THAT THE GOVERNMENT UNDERSTOOD THAT THE CHINESE'S CONCERN WAS WITH THE FINANCIAL ARRANGEMENTS AND THAT IT WOULD NOT BE DIFFICULT TO CLARIFY SOME OF THE MISUNDERSTANDING DURING THE NEXT ROUND OF TALKS ON THE AIRPORT PROJECT. ON THE QUESTION OF THE AIRPORT AUTHORITY, DEPUTY SECRETARY FOR WORKS RAFAEL HUI SAID THAT THE POWERS AND FUNCTIONS OF THE AUTHORITY WOULD BE LAID DOWN IN AN ORDINANCE.
15. THE CONVENOR OF THE LEGCO AD HOC GROUP ON THE AIRPORT PROJECT, STEPHEN CHEONG, SAID THAT HE DID NOT BELIEVE THAT THE
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