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MDHIAN 90..
ASSUME HE WOULD ACT AS A CONDUIT TO KEEP THE CHINESE SIDE INFORMED. I WOULD BE PREPARED TO INFORM THE CHINESE IN ADVANCE OF OTHER MEMBERS I PROPOSE TO APPOINT. IF THE CHINESE HAVE VIEW ON THEM, I WOULD BE PREPARED TO LISTEN TO THEM PROVIDED THEY WERE PUT ON AN INFORMAL AND STRICTLY PRIVATE BASIS. MEMBERS WOULD INITIALLY BE APPOINTED FOR PERIODS FALLING SHORT OF 1997. AT A LATER STAGE, WHEN APPOINTMENTS WOULD STRADDLE 1997, THE GOVERNOR WOULD CONSULT THE SAR CHIEF EXECUTIVE-DESIGNATE.
5. I WOULD RESIST PRESSURE FOR A VICE-CHAIRMAN. THE MTRC DOES NOT HAVE ONE. I WOULD ALSO RESIST PRESSURE FOR THE CHINESE
NOMINEE TO BE A MAINLAND OFFICIAL.
CONSULTATIVE COMMITTEE
6.
I WOULD BE WILLING TO DISCUSS MEMBERSHIP OF THE CONSULTATIVE COMMITTEE PRIVATELY WITH THE CHINESE, ALTHOUGH THEY WOULD BE APPOINTED BY ME. I WOULD AIM FOR AGREEMENT THAT THE COMMITTEE WOULD TAKE IT AS READ THAT CHEK LAP KOK WOULD BE THE SITE FOR THE AIRPORT. BUT IN THE ABSENCE OF THIS I WOULD SETTLE FOR AGREEMENT THAT THE COMMITTEE SHOULD NOT BECOME A SOURCE OF DELAY IN EXECUTING THE PROJECTS. THE COMMITTEE SHOULD ALSO ONLY SERVICE AS A FORUM FOR COLLECTING AND VOICING OPINIONS. IT WOULD NOT HAVE DECISION-MAKING POWER.
BORROWING
1.
IN VIEW OF THE CHINESE SIDE'S CONCERN ABOUT HKG BORROWING, I COULD ACCEPT THAT THE BALANCE OF HKG DEBT OUTSTANDING ON 30 JUNE 1997 SHOULD NOT EXCEED HKD 10 BILLION, PROVIDED IT IS CLEAR THAT THIS LIMIT WILL NOT APPLY TO EXCHANGE FUND BILLS. OTHER BORROWING SHOULD CONTINUE IN THE NORMAL WAY WITH NO ARTIFICIAL LIMIT. THE CHINESE NOMINEE ON THE AA WOULD OF COURSE KNOW WHAT WAS GOING ON. IT WOULD OBVIOUSLY ONLY BE POSSIBLE TO RAISE FUNDS ON COMMERCIAL TERMS. BORROWING BY THE AA WOULD BE SUBJECT TO THE APPROVAL OF THE FINANCIAL SECRETARY. I WOULD IN THIS CONTEXT CONFIRM OUR AGREEMENT THAT WE WOULD TRY TO MAXIMISE PRIVATE INVESTMENT.
A)
Redacted Under FOI Exemption Sec 27(1)(a)(c)(d)