HKC 18212
ECEIVE
1990
功
Commissioner
PADS
You may wish to note the following report in the Hong Kong Economic Journal dated 13.10.90 -
"A delegate to the National Peoples Congress [of the PRC], who was interviewed yesterday, indicated that the Chinese Government had, on unofficial occasions, made clear to foreign financial institutions that the Chinese side was at present not willing to accept the commitments for Hong Kong's new airport. If they still invested but the future returns turned out to be inadequate to cover their expenses, the Chinese side could not held be responsible."
The above was made in the context of the Journal's reporting on the PADS seminar organized by the HKGCC 12.10.90. It was the seminar during which Liu Yiu-chu, an NPC delegate, criticised the "unhealthy attitude" of HKG towards China (because of HKG's earlier announcement about the construction of the Lantau fixed crossing using public funds) and said that she could "guarantee that the future HKSARG would not continue with the construction of the new airport".
It is difficult to assess how much credence could be given to the HKEJ report about the Chinese Government's threat to financial institutions. However, with or without the threat, Chinese support was regarded by those bankers who attended the lunch with FS on 20.9.90 as essential to attracting private sector financing for PADS.
( C Kwong)
Deputy Commissioner
17 October 1990
ра
-Ry 1/16 Miss Marsden Mr. Stone. 18/10
GF.
CE MR MCLAREN
MR BURNS
Oh dear
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