Question 18: Now, we all know that the size of the Exchange Fund is supposed to be secret. But Lu Ping today put the figure at 30 billion Hong Kong dollars, which seems rather small to me. And you are not refuting this figure. So, in other words, you are allowing this figure to float around Hong Kong?
Mr Macleod: I am here because I deal with the Hong Kong government finances and the financing of the airport. I don't, unfortunately, happen to deal with the Exchange Fund. I really don't deal with it. And I don't deal with the Hong Kong dollar either. So I can't comment on those 30 billion, 60 billion. The relevant branch is the monetary affairs branch.
Question 19: What about another suggestion made by Mr Lu Ping that they don't know how you have come up with
with this calculation that the SAR Land Fund will add up to about, more than, 70 billion by 1997. They have said that their own calculations can come up with a figure of 40 billion dollars. Can you explain how you arrived at that figure?
Mr Macleod: I think, as has been said also recently, if we are to have constructive dialogue we really need to have it in private. So I am quite sure that the questions of what is the correct projection of the balance in the Land Fund will no doubt come up when we have a further round of talks on the new airport. That would be an appropriate forum, although, no doubt, there are other fora for discussion that. But I would be rather reluctant start engaging in a public discussion of how we did our calculation and how they did their calculation and which one was correct. Of course, there are judgements in any projection of figures fairly far into the future, we are talking about six or seven years time. But we believe that our projection is a prudent, conservative, sensible sort of projection. I would always be very happy to look at other projections.
Question 20: So you stand by the 70 billion dollar figure?
Mr Macleod: We believe it is a realistic forecast.
Question 21: Mr Macleod, can you explain how you can be so positive that Hong Kong can afford this project without any kind of firm idea of much private sector involvement there will be in the airport and the crossing.
Mr Macleod: Yes. I can. Because from the start, you may remember those of you who were in this same room when this whole project was launched, that we have always given a range for private sector participation. In other words we have a number of scenarios. You might call them rosy scenarios and less rosy scenarios. And we looked at both. We looked at optimistic and less optimistic forecasts on both costs and on private sector participation. And we concluded that the whole range was acceptable. In other words, whether we got a very good or a disappointing result. The cash flow projections were acceptable and the rate of growth of expenditure was acceptable. Bearing in mind that come 1997 both we would begin to have both the benefits of that spending on the infrastructure, not just the revenue but the effects on the economy, and we would also have