CONFIDENTIAL
CONFIDENTIAL
FM FCO
TO PRIORITY HONG KONG
TELNO 2450
OF 311505Z DECEMBER 90
PADS: FINANCING
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нис 182 12
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052624 MDLOAN 7559
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By posthecated
reveme
1. LORD YOUNG CALLED ON LORD CAITHNESS RECENTLY TO BRIEF HIM ON HIS RECENT VISIT TO HONG KONG.
2.
IN THE COURSE OF THAT MEETING, LORD YOUNG SUGGESTED THAT THE NEW AIRPORT MIGHT BE FUNDED BY FLOATING A BOND SECURED ON THE DEVELOPMENT VALUE OF KAI TAK AND THE LIFTING OF HEIGHT RESTRICTIONS IN KOWLOON. HE SAID THAT SUCH AN APPROACH, WOULD HELP TO DEMONSTRATE TO THE CHINESE THAT THE AIRPORT WAS BEING FINANCED WITHOUT EXCESSIVELY DRAWING DOWN HONG KONG GOVERNMENT FUNDS.
3 THIS IDEA, OR A VARIATION OF IT, MAY WELL HAVE ALREADY OCCURRED TO YOU. WE NOTE FROM THE GIST, QUOTING DAVID NENDICK, THAT THE ISSUING OF GOVERNMENT BONDS IS BEING STUDIED AND ANY RESULTS WILL BE SUBMITTED TO THE FINANCIAL SECRETARY.
HURD
GRATEFUL FOR YOUR VIEWS ON LORD YOUNG'S IDEA.
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CONFIDENTIAL