CONFIDENTIAL
131240
MDHIAN 6230
Chane
ה
neichn
- dcl.
OULD BEGIN TO CHOKE. EQUALLY IMPORTANT WAS THE MATTER OF CONFIDENCE. THE PROBLEM HAD BEEN DISCUSSED FOR MANY YEARS IN HONG KONG. IF IT WERE NOT TO GO AHEAD, IT WOULD SEEM TO MANY PEOPLE THAT HONG KONG HAD NO FUTURE. THE CONTRACTS WOULD NOT NECESSARILY GO TO BRITISH CONCERNS. THE HONG KONG GOVERNMENT WENT OUT TO TENDER ON ALL CONTRACTS. THE BRITISH INTEREST WAS TO HAND OVER A PROSPEROUS AND EXPANDING HONG KONG. THROUGH HONG KONG THE UK WOULD CONTINUE TO TRADE WITH CHINA.
12. LI SUGGESTED THAT SINCE THE PROJECT WOULD COST SUCH A LOT AND WOULD INVOLVE LAND RECLAMATION AND SO ON, WOULD IT NOT BE BETTER TO BUILD AN AIRPORT SOMEWHERE ON THE MAINLAND SUCH AS GUANGDONG, E.G. NEAR CANTON ? THE DISTANCE WOULD BE NEARER THAN NARITA AIRPORT TO TOKYO. LORD YOUNG SAID THAT HE HAD NOT STUDIED ALL THE DETAILS OF THE SCHEME. BUT THE CONTAINER TERMINAL AND THE AIRPORT WERE PART OF A COMPLEX ALL RELATED TO THE SMOOTH CARRIAGE OF GOODS. IF THE DEVELOPMENT TOOK PLACE ELSEWHERE, IT MIGHT BE DIFFICULT TO OBTAIN THE PRIVATE INVESTMENT.
13. I SAID THAT AS THE GOVERNOR HAD EXPLAINED TO PREMIER LI PENG IN JANUARY THERE HAD BEEN 8 SEPARATE STUDIES UNDERTAKEN FOR THE PROJECT. IT HAD BEEN SHOWN THAT THE ECONOMIC DISBENEFIT OF TAKING NO ACTION OVER THE NEW AIRPORT SCHEME WOULD BE OF THE ORDER OF HONG KONG DOLLARS 100 BILLION. SECONDLY, THE SPECIAL LAND FUND AGREED BETWEEN THE TWO GOVERNMENTS FOR THE USE OF THE SAR WOULD HAVE REACHED A CONSIDERABLE SUM BY 1997. THIRDLY, THERE WERE A NUMBER OF ECONOMIC SAVINGS THAT WOULD BE MADE IF THE CONTAINER PORT AND THE BRIDGES, TUNNELS AND RUNWAYS ETC WERE TO BE BUILT AT THE SAME TIME. LORD YOUNG ADDED THAT ALTHOUGH HONG KONG HAD HIGHER COSTS, THOSE WHO HAD STUDIED THE SCHEME WERE CONFIDENT THAT THESE WOULD BE COVERED BY EARNINGS.
14. LI SAID HE UNDERSTOOD.
THERE WAS NO NEED FOR FURTHER
EXPLANATIONS ON THESE POINTS. HE SAID THAT HE WOULD TRY TO CONVINCE OTHERS ON THE CHINESE SIDE, PROVIDED THAT LORD YOUNG WOULD EXPLAIN THE CHINESE SIDE'S ANXIETIES IN BRITAIN AND HONG KONG. THE ESTIMATE FOR THE RECOVERY OF THE COSTS WAS BASED ON THE FEASIBILITY STUDIES, WHICH IN TURN WERE BASED ON THE CURRENT EFFICIENCY OF HONG KONG. AFTER CHINA HAD TAKEN OVER HONG KONG, THERE MIGHT BE DIFFERENT VIEWS. MOREOVER, IF PEOPLE WERE MOVING 1 OUT OF HONG KONG AND THERE WAS THE KIND OF SHRINKING THAT LORD
YOUNG HAD IMPLIED, THERE MIGHT THEN BE A SUPERFLUOUS CAPACITY IN THE AIRPORT DEVELOPMENT. HE CONCEDED THAT AFTER 1997 THERE MIGHT SE WORRIES ABOUT INTERFERENCE FROM PEKING DESPITE THE
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