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OF 03090OZ SEPTEMBER 90
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FM BTC HONG KONG
TO PRIORITY
DTI
TELNO OTTER 195
INFO PRIORITY FCO
INFO ROUTINE PEKING, TOKYO
NKC 182 12
Cc.
RECEIVED IN SE
05 SEP 1990
SK OFFIC
.X
FOR ADAMS, HEAD OF PEP
در
125
147304
MDLIAN 7493
Alon Rosalvó
Terry
✓
Frie
MY TELNO OTTER 190: HONG KONG AIRPORT PROJECT : FURTHER DEVELOPMENTS
THE CHINESE DIMENSION
1. ZHOU NAN, DIRECTOR OF HONG KONG'S XINHUA NEWS AGENCY, TOLD THE PRESS ON 31 AUGUST THAT CHINA WOULD NOT BE ABLE TO JUDGE THE PROJECT UNTIL IT HAD RECEIVED THE FINANCIAL CONSULTANCY STUDIES NOW BEING UNDERTAKEN. CURRENTLY AVAILABLE INFORMATION WAS NOT SUFFICIENT. ''AFTER SEEING THE STUDIES WE CAN THEN MAKE KNOWN OUR ATTITUDE ON A SERIES OF AIRPORT ISSUES''. THE HONG KONG PRESS HAVE INTERPRETED THIS AS MEANING THAT IT WILL BE AT LEAST 3 MONTHS BEFORE THE CHINESE AUTHORITIES WILL MAKE ANY JUDGEMENTS.
2. SIR DAVID FORD AND SIR PIERS JACOBS HAVE EACH STATED PUBLICLY THAT THE PROJECT IS NOT DEPENDENT UPON CHINESE SUPPORT AND THAT THE GOVERNMENT WILL PRESS AHEAD WHILE DOING EVERYTHING TO CONVINCE THE CHINESE AUTHORITIES THAT IT IS NECESSARY AND VIABLE. SIR PIERS JACOBS SAID IN A SPEECH ''THIS IS A HONG KONG PROGRAMME AND IS REALLY HONG KONG'S DECISION WHETHER OR NOT TO BUILD THIS AIRPORT AND THAT IS A VERY IMPORTANT POINT TO MAKE''.
THE SIZE OF THE PROJECT
3. SIR P JACOBS IN THE SAME SPEECH ON 31 AUGUST SAID THE GOVERNMENT WERE DIVIDING THE PROJECT INTO ''CORE'' AND ''NON- CORE ITEMS,
AND THAT NO DECISIONS HAD BEEN MADE ON WHETHER THE PLANNED RAIL LINK WAS A ''CORE PROJECT: INVESTORS SHOULD NOT WAIT: THE PROJECT WOULD BE SPLIT INTO PACKAGES ATTRACTIVE TO PRIVATE SECTOR DEVELOPERS.
OVERALL FINANCIAL ADVISER
4. THE ANNOUNCEMENT OF MORGAN STANLEY AS THE OVERALL FINANCIAL ADVISER FOR THE WHOLE PADS PROJECT HAS PROMPTED SOME CRITICISM OF
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