UNCLASSIFIED
112401 MDLIAN 6439
ON THE PRINCIPLE OF 'THE HIGHER THE RISK THE GREATER THE REWARD"
WITH THE LIKELY RESULT THAT THE PROJECT WOULD HAVE BECOME MORE COSTLY IN TERMS OF GOVERNMENT SUPPORT THAN WE BELIEVE TO BE JUSTIFIED. IT WOULD THUS HAVE BECOME MORE EXPENSIVE FOR THE HONG KONG TAX-PAYER.
AN IMPORTANT ELEMENT OF THE PORT AND AIRPORT DEVELOPMENT STRATEGY IS THE OPPORTUNITY IT PROVIDES FOR PRIVATE SECTOR FINANCING. THE COST OF THE LANTAU BRIDGE REPRESENTS LESS THAN 10
PER CENT OF THE WHOLE PROJECT AND SUBSTANTIAL OPPORTUNITIES REMAIN FOR PRIVATE SECTOR INVOLVEMENT IN SUCH MAJOR PROJECTS AS THE AIRPORT ITSELF, THE PORT, THE AIRPORT RAILWAY AND THE THIRD CROSS HARBOUR TUNNEL. WE BELIEVE THAT THE CERTAINTY INJECTED INTO
THE WHOLE PROJECT BY OUR DECISION TODAY WILL DO MUCH TO ENCOURAGE INVESTMENT IN THESE OTHER PROJECTS, AND WE WILL OF COURSE DO ALL WE CAN TO FACILITATE THIS.
WILSON
YYYY
ΜΑΙΝ
76
DISTRIBUTION
86
.HK AGREEMENT
LIMITED
HKD
HD/FED
HD/PLANNERS
HD/CONSULAR D
NEWS D
NPDD
PUSD
PS
PS/LORD CAITHNESS
PS/PUS
MR P J WESTON
MR MCLAREN
SIR A WATTS
MR BURNS
MRS SUTHERLAND MR BLATHERWICK
ADDITIONAL
HK AGREEMENT
NNNN
10
PAGE
3
UNCLASSIFIED