1990-11-OT
GIS 45
5.1.9
To: Overseas Offices
At GIS D.
Total: 38 ANOS
P.01
CIS/L/F/1317
Flo
PARS J.G
WEDNESDAY, OCTOBER ?A, 1990
NEW AIRPORT VITAL TO HONG KONG'S FUTURE ECONOMIC GROWTH
THE FINANCIAL STRENGTH OF HONG KONG IS THE KEY FACTOR KNABLING THE GOVERNMENT ΤΟ PROCEED WITH THE AIRPORT PROGRAMME. THE FINANCIAL SECRETARY, SIR PIERS JACOBS, SAID TODAY.
"WS WOULD NOT HAVE PROCEEDED WITH THIS PACKAGE IF WE DID NOT BELIEVE THAT DOING SO WAS CLEARLY WITHIN OUR FINANCIAL CAPACITY.
SIR PIERS, WHO WAS ONE OF FIVE SENIOR GOVERNMENT OFFICIALS TO SPEAK ON THE PORT AND AIRPORT DEVELOPMENT STRATEGY (PADS) IN LEGCO TODAY, DETAILED THE STATE OF HONG KONG'S RESERVES, THE SAR GOVERNMENT LAND FUND, AND THE POTENTIAL LAND SALES REVENUES AS DEMONSTRATING THE STRENGTH OF THE TERRITORY'S FINANCIAL POSITION.
HE SAID THAT EVEN ON FAIRLY CONSERVATIVE ASSUMPTIONS ABOUT FUTURE LAND SALES AND INTEREST, THE LAND FUND SHOULD BE WELL OVER $70 BILLION MARCH 1997. AT THE END OF LAST FINANCIAL YEAR, 1989-90 THE FUND STOOD AT OVER $17 BILLION.
"OUR FINANCIAL PLANNING ASSUMES THAT THE HONG KONG GOVERNMENT DOES NOT DRAW AT ALL ON THE LAND FUND.
"WHEN THE SAR GOVERNMENT COMES INTO BEING IT SHOULD HAVE AN AIRPORT WHICH WILL PRODUCE REVENUE A GREATLY IMPROVED INFRASTRUCTURE MUCH OF IT ALSO REVENUE-PRODUCING AND SOMEWHAT LARGER RESERVES THAN WE
PRESENTLY ENJOY," SIR PIERS SAID.
THE FINANCIAL SECRETARY ALSO POINTED OUT THAT HONG KONG'S RESERVES ALREADY TOTALLED MORE THAN $70 BILLION - UP FROM $24 BILLION FIVE YEARS AGO, AND THAT POTENTIAL LAND SALES REVENUE AMOUNTED TO SOME $40 BILLION.
THESE THREE FACTORS - THE RESERVES, THE SAR GOVERNMENT LAND HUND AND THE POTENTIAL LAND SALES DEMONSTRATED THE STRENGTH OF HONG KONG'S POSITION.
BIR PIERS ADDED: "INVESTMENT IN THE AIRPORT PROGRAMME IS INVESTMENT IN HONG KONG'S FUTURE. WHEN COMPLETED THE AIRPORT AND RELATED FACILITIES WILL BRING TO HONG KONG LONG TERM ECONOMIC AND FINANCIAL BENEFITS FAR GREATER THAN THE COST OF THE INVESTMENT, AND THESE BENEFITS WILI. BE ENJOYED WELL INTO THE NEXT CENTURY."
THE ACTING SECRETARY FOR TRANSPORT, MR ALBERT LAM PR VATE SECTOR PARTICIPATION IN THE LANTAU FIXED WIDE OPEN.
ΤΟ
SAID THE DOOR CROSSING REMAINED
THE GOVERNMENT'S DECISION TO FINANCE THE CONSTRUCTION OF THE CROSSING DiD NOT PRECLUDE CONSIDERATION OF OFFERS OF FINANCE OR PLEDGES OF FINANCIAL SUPPORT AT THE TENDER STAGE. AND THE GOVERNMENT ALSO RETAINED THE OPTION OF CALLING FOR COMPETITIVE BIDS TO OPERATE THE FIXED CROSSING ONCE COMPLETED.
MR LAM SAID THE "PREQUALIFICATION" EXERCISE IN SELECTING TENDERERS FOR THE CONSTRUCTION OF THE LANTAU FIXED CROSSING WOULD BEGIN SHORTLY.