J S Wall Esq CMG LVO
Private Secretary
No. 10
CONFIDENTIAL
HONG KONG: HMG INVOLVEMENT IN AIRPORT FUNDING
Your letter of 26 April 1991 about the airport project
records discussion of a suggestion by Mrs Thatcher that the
airport might be built under ATP arrangements. We have looked
at this option, in accordance with the instructions in the
penultimate paragraph of your letter.
There are indeed overwhelming arguments against using ATP arrangements to finance the project. The Government's policy
is that ATP should be available only to developing countries
which have a per capita GDP of less than US$3000 (at 1981
levels): Hong Kong greatly exceeds this. Further, under
arrangements which are now being considered by the OECD,
associated financing is likely to be ruled out for countries
with a current GDP income per head of US$2335 and for projects
which cost more then-80 million Special Drawing Rights (approx
$US 100-mittion). We expect these new rules to be approved by the OECD Ministerial meeting on 4/5 June.
CONFIDENTIAL
newu dico póra? will be introduces for large project