Answer: Mrs Chan:
No. I have already said that No. But, of course, we hope that all, whether local or international companies, including Chinese companies, will feel able to participate, actively, in the bidding of contracts and licences.
Mr Yeung:
On a level playing field. Our attitude towards bidders is governed not only for value for money considerations, we
we are also a contracting party to the GATT. And in 35 far a s government procurement is concerned, we are a signatory to the GATT procurement code. And that requires us to exercise maximum transparency.
Question 22: worry about.
Between us, I don't think you have a GATT problem to
Answer: Mr Yeung:
I think you will find that there are many signatories. We could be hammered in the GATT if we were to start choosing bidders on the basis of nationality. We could be in serious trouble.
Question 23: Mr Yeung, there was some news coverage saying that there could be a real funding squeeze, given all the demands the government will have to fund for projects. How will this affect the average man in the street? I understand that if there is quite a bit of borrowing, costs will increase. Is this going to affect mortgages and things like that?
Answer: Mr Yeung:
In other words: Would the government S borrowing programme squeeze the money supply and would the squeeze on the money supply lead to tighter interest rates which would then affect the average home buyer? A very convoluted process.
No, I don't think so. But,
as I said, the Financial Secretary will be seeking legislative authority to borrow for two basic reasons. One is to iron out the peaks in expenditure. That is an accounting consideration. But, secondly, he may wish to borrow more heavily than usual for example if the money supply is too large and he wants to dampen inflation. In which case, it might tighten up the money supply. But he would then be doing it in connection with the management of the economy - which is no bad thing.
Question 24: (asked in Chinese and answer repeated in English)
Mrs Chan:
I was saying that the second runway is currently not, of course, included in the airport core programme. If for any reason we decide we want to build it before 1997 and, certainly, after 1997, we would need to consult with the Chinese through the Airport Committee
Mrs Chan:
make a statement?
Can I take this opportunity to clarify one point and
I am keen to point out, because it seems to me, reading some of the recent reporting, that there may be a misunderstanding.
Everything that is listed in the airport core programme does not require consultation through the Airport Committee. That is very important in the sense that it means
sense that it means that all the projects in the airport core programme the Hong Kong Government will proceed with expeditiously without the need to consult with the Chinese.
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