CONFIDENTIAL
110051
MDHOA 8813
PARA 4. WE THINK THIS LINE IS WORTH TRYING. HOWEVER, IT IS NOT CLEAR FROM CHINESE STATEMENTS EXACTLY WHAT THEY MEAN BY HKG GUARANTEED BORROWING. IF THEY MEAN STRICT CONTINGENT LIABILITIES ON HKG, THEY MAY CLAIM THE RIGHT TO MAINTAIN THAT SUCH BORROWING WOULD NOT BE RECOGNISED BY THE SARG UNLESS AGREED BY THE CPG. HOWEVER, AS WE UNDERSTAND IT, ALMOST ALL BORROWING (EG BY THE MTRC AND KCR) IS NOT THE SUBJECT OF A GOVERNMENT GUARANTEE, IE IS NOT A CONTINGENT LIAIBLITY. DO YOU INFACT ENVISAGE GUARANTEEING ANY OF THE BORROWING BY THE AIRPORT AUTHORITY?
HURD
YYYY
ΜΑΙΝ
77
.PADS
LIMITED
HKD
COMED
ECONOMIC ADVISERS
ERD
HD/FED
NEWS D
PLANNERS
ADDITIONAL
1
MR YAXLEY HKGO LONDON
NNNN
DISTRIBUTION
78
PUSD
RAD
PS/LORD CAITHNESS
PS/MR LENNOX-BOYD
MR BAYNE
MR MCLAREN
MR MILES
MR BURNS
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