UNCLASSIFIED
003222
MDLIAN 3933
AIRPORT
13. IT WAS WIDELY REPORTED (7.12) THAT SIR DAVID WILSON SAID IN LONDON THAT THE SITE AT CHEK LAP KOK HAD BEEN ACCEPTED BY THE CHINESE. RESPONDING TO THE REPORT, A VICE-DIRECTOR OF THE NCNA HONG KONG BRANCH, ZHANG JUNSHENG, SAID THAT THE CHINESE COULD NOT MAKE CLEAR ITS STAND ON THE AIRPORT'S SITE, SCALE AND FUNDING UNLESS THE BRITISH SIDE PROVIDED MORE RELEVANT INFORMATION.
14. CLARIFYING HIS REMARKS, SIR DAVID WAS QUOTED (10.12) AS SAYING THAT THE FACT THAT HONG KONG MUST HAVE A NEW AIRPORT WAS ACCEPTED QUITE CLEARLY BY THE CHINESE GOVERNMENT. IT HAD GRADUALLY GOT TO A SITUATION WHERE THOSE WHO STUDIED THE MATTER CAREFULLY REALISED CHEK LAP KOK WAS THE RIGHT PLACE AND HONG KONG WOULD CONTINUE TO EXPLAIN IN DETAIL TO THE CHINESE ABOUT THE FINANCIAL BACKGROUND, AND THE PROJECT WAS WELL WITHIN HONG KONG'S FINANCIAL CAPACITY.
15. THE SECRETARY-GENERAL OF THE NEW HONG KONG ALLIANCE, TS LO, WAS REPORTED TO HAVE TOLD CHINESE PREMIER LI PENG THAT BECAUSE THE PROVISIONAL AIRPORT AUTHORITY ENJOYED GREAT POWERS AND WAS NOT PUT UNDER ANY MONITORING SYSTEM, THERE MIGHT BE CONFLICTS OF INTEREST AMONG MEMBERS OF THE AUTHORITY.
16. THE CHAIRMAN OF THE SWIRE GROUP OF COMPANIES, DAVID GLEDHILL, CRITICISED THE MEDIA FOR OVER-ESTIMATING COSTS OF THE NEW AIRPORT PROJECT AND SAID THAT THE VALUE OF THE SITE MADE AVAILABLE BY THE REMOVAL OF KAI TAK AIRPORT MIGHT POSSIBLY COVER COSTS FOR THE
ENTIRE AIRPORT PROJECT. SING TAO WAN PAO REPORTED THAT THE HONG KONG GOVERNMENT PLANNED TO LEAVE ONLY HKD5 BILLION IN THE RESERVES FOR THE SAR GOVERNMENT AND THAT THE REST WOULD BE USED TO BUILD THE 'ROSE GARDEN' PROJECTS. THE EXPRESS AND THE ORIENTAL DAILY NEWS QUOTED A GOVERNMENT SPOKESMAN AS SAYING THAT THE GOVERNMENT WOULD USE BOTH THE EXCHANGE FUND AND THE RESERVES TO BUILD THE PADS PROJECTS.
17. A SENIOR GOVERNMENT OFFICIAL WAS QUOTED AS INDICATING THAT THE EXCHANGE FUND WOULD DEFINITELY NOT BE USED BUT THAT THE BUDGET SURPLUS WAS ONE OF THE WAYS TO FUND THE AIRPORT. SECRETARY FOR ECONOMIC SERVICES, ANSON CHAN, ALSO SAID THAT THE EXCHANGE FUND WAS TO BE USED FOR ANOTHER PURPOSE THAT WAS TOTALLY UNRELATED TO THE AIRPORT. LU PING SAID THAT THE CHINESE DID NOT WANT THE HONG KONG GOVERNMENT TO USE THE FINANCIAL RESERVES
BECAUSE THE RESERVES WERE A COMPONENT OF THE EXCHANGE FUND AND
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