82
CONFIDENTIAL
FM HONG KONG
TO IMMEDIATE FCO
TELNO 2072
OF 050849Z JULY 90
CONFIDENTIAL
HKC C 18212
ཀ
Y
17 JUL 1990
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121421 MDHIAN 7707
TOP COPY
Q DIST?
INFO PRIORITY PEKING, UKREP G HONG KONG, BTC HONG KONG
14
OUR TELNO 1798: MR MAUDE'S VISIT TO CHINA: PADS
1. WE ARE FAXING TO YOU A 3 PAGE PAPER ON PADS WHICH COULD BE USED DURING MR MAUDE'S VISIT.
2. WE SUGGEST THAT THE FOLLOWING POINTS MIGHT BE INCLUDED IN HIS
BRIEFING:
A NEW AIRPORT FOR HONG KONG IS NECESSARY IF THE FUTURE ECONOMIC GROWTH OF THE SAR IS NOT TO BE RESTRICTED. THE ECONOMIC DISBENEFITS OF NOT BUILDING A NEW AIRPORT HAVE BEEN ESTIMATED AT HKD 101 BILLION BETWEEN 1996 AND 2010.
NEW PORT FACILITIES WILL BE DEVELOPED INCREMENTALLY IN RESPONSE TO
DEMAND.
IT WOULD BE VERY IRRESPONSIBLE FOR THE HKG NOT TO PLAN FOR THE TERRITORY'S ECONOMIC FUTURE BEYOND 1997. THE PLANS ARE A VOTE OF CONFIDENCE IN THE FUTURE AS WELL AS A PRACTICAL NECESSITY. CHINESE SUPPORT FOR THEM WOULD LIKEWISE BE A VOTE OF CONFIDENCE IN THE SAR'S FUTURE. LACK OF SUPPORT WILL ENGENDER DOUBT IN THE MINDS OF INTERNATIONAL BUSINESSMEN WHICH WILL MAKE IT HARDER TO RAISE THE NECESSARY FINANCE ON GOOD TERMS. THAT WOULD BE DISAPPOINTING AND NOT IN THE LONG TERM INTEREST OF THE SAR. IT WOULD NOT STOP THE PLANS BUT IT WOULD MAKE THEM MORE EXPENSIVE.
AS THE PAPER SHOWS, THE SITE FOR THE AIRPORT WAS CHOSEN ONLY AFTER SOME 17 YEARS OF INTERMITTENT STUDY. ABOUT 30 SITES WERE CONSIDERED OVER THIS PERIOD. ALL THE ALTERNATIVES WERE FOUND TO BE LESS ATTRACTIVE THAN CHEK LAP KOK. (IF THE CHINESE REFER TO PARTICULAR OTHER SITES, WE SUGGEST THAT MR MAUDE SHOULD ASK THEM TO TAKE UP THE DETAILED POINTS DIRECT WITH THE HKG.)
THE HKG HAS ALWAYS PURSUED A CAUTIOUS AND PRUDENT FISCAL POLICY. ON THE BASIS OF THE STUDIES WHICH LED TO THE DECISION TO PROCEED WITH THE PLANS, TOTAL POTENTIAL EXPENDITURE FOR THE HKG WOULD BE ABOUT
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