CONFIDENTIAL
227
041131 MDHOAN 0893
CONFIDENTIAL
FM FCO
TO IMMEDIATE HONG KONG
TELNO 2083
OF 06110OZ NOVEMBER 90
НКС. 16212
14 NOV 1990
¿ Sg o
W
INFO ROUTINE PEKING, UKREP JLG HONG KONG
222
YOUR TELNO 3223: PADS: THE WAY FORWARD
1.
WE WERE MOST GRATEFUL FOR THESE THOUGHTS ON THE WAY FORWARD. WE ARE CONSIDERING THESE IDEAS AND WILL REVERT IN DUE COURSE. IN THE MEANTIME, WE WOULD BE INTERESTED IN YOUR VIEWS ON THE FOLLOWING POINTS.
2.
FIRST, WE WONDER WHETHER THERE COULD BE PRESENTATIONAL ADVANTAGE IN SEEKING TO DRAW ANALOGIES BETWEEN THE AIRPORT CORE PROGRAMME OF PADS AND THE CONSTRUCTION OF THE MTR. IT WOULD BE INTERESTING TO KNOW HOW MUCH THE MTR WOULD HAVE COST AT CURRENT PRICES AND HOW THE COST COMPARES IN TERMS OF ITS THEN PROPORTION OF GDP AND THE PROJECTED PROPORTION OF GDP THAT THE ACP WILL COST. IF THEY ARE OF THE SAME ORDER OF MAGNITUDE, THIS WOULD HELP TO PUT INTO PERSPECTIVE CONCERNS ABOUT THE SIZE AND COST OF PADS AND TO DEMONSTRATE THAT HONG KONG HAS A PROVEN ABILITY TO COPE SUCCESSFULLY WITH PROJECTS OF THIS SCALE.
3=
ON FINANCING, WE NOTE FROM THE FIGURES IN YOUR TELNO THE SHARP INCREASE IN REVENUE PROJECTED FOR 1997/98 OVER 1996/97. WE ARE NOT SURE TO WHAT EXTENT THIS REFLECTS THE IMPOSITION OF THE 3 PER CENT ANNUAL RENT THAT LEASEHOLDERS WILL HAVE TO PAY AFTER 1997 (JD208). BUT IN ANY CASE WE SEE ADVANTAGE IN PUBLICISING THE EXISTENCE OF THE NEW AND STABLE SOURCE OF REVENUE AFTER 1997, WITH THE AIM OF DEMONSTRATING THE STRENGTH
OF THE SARG'S FINANCIAL POSITION.
4.
WE HAVE ALSO RECEIVED BY FAX THE TEXT OF THE NOTE FOR THE CHINESE. WE HAVE ONLY ONE COMMENT: WE WONDER WHETHER PARAGRAPH 5 MIGHT BE EXPANDED SO AS TO SET OUT WHAT DECISIONS NEED TO BE TAKEN IN THE THREE AREAS MENTIONED, AND IN WHAT TIMESCALE.
HURD
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