the principles enshrined in this Memorandum that obligations related to the airport projects entered into or guaranteed by the Hong Kong Government will continue to be valid and be
recognised and protected by the Hong Kong Special
Administrative Region Government from 1 July 1997. The
Chinese Government have accepted that the Bank of China will
play an appropriate part, for example in the syndication of
loans for the airport projects, and that Chinese construction firms may compete in the normal way for projects connected with the airport.
C. On important matters relating to the airport project
that straddle 30 June 1997, the Chinese and British
Governments will carry out consultations in a spirit of cooperation and in accordance with the Sino-British Joint
Declaration. An Airport Committee will be constituted for
this purpose under the auspices of the Sino-British Joint Liaison Group, with membership drawn equally from both
sides. Its tasks will be as follows:
(i) The British side will consult the Chinese side
within the Airport Committee before the Hong Kong Government grants major airport-related franchises or contracts straddling 30 June 1997 or guarantees airport-related debt straddling 30 June 1997. The Chinese side will adopt a
positive attitude to such grants, contracts and guarantees. Up to one month after the British side provide details of the proposals will be allowed for discussion between the two sides in each case. Any decision will give full weight to
the Chinese Government's views. The governing criteria in the case of a decision on a franchise will be the profitability and efficiency of that franchise.
ASHAHA/2