CONFIDENTIAL
043456
MDHOAN 6743
NOR
AFFECT HKG'S ABILITY TO MANAGE THE PROJECT EFFECTIVELY. SHOULD THEY SET UNWELCOME PRECEDENTS. THE AIRPORT COMMITTEE IS UNDER THE AUSPICES OF THE JOINT LIAISON GROUP, WHICH THE JOINT DECLARATION SET UP AS AN ORGAN FOR LIAISON, NOT POWER OR SUPERVISION.
8. THE GOVERNOR OF HONG KONG AND HIS ADVISERS IN THE EXECUTIVE COUNCIL HAVE BEEN CLOSELY INVOLVED AND CONSULTED THROUGHOUT. FIRST REACTIONS IN HONG KONG TO THE UNDERSTANDING ARE MOSTLY POSITIVE.
9.
HONG KONG WILL NOW PLAN ITS FINANCES WITH THE FIRM OBJECTIVE OF LEAVING NOT LESS THAN HK DOLLARS 25 BILLION (PDS 2 BILLION) IN 1997. CURRENT RESERVES ARE ABOUT HK DOLLARS 72 BILLION.
BACKGROUND (FOR YOUR OWN INFORMATION)
10.
THIS HAS BEEN A BRUISING NEGOTIATION. HONG KONG ANNOUNCED ITS AMBITIOUS PORT AND AIRPORT DEVELOPMENT STRATEGY IN OCTOBER 1989 AS PART OF A MINISTERIALLY-AGREED PACKAGE TO RESTORE CONFIDENCE IN HONG KONG AFTER TIANANMEN. THE AMBITIOUS AIRPORT PROJECT, TO REPLACE CONGESTED KAI TAK AND TO BE BUILT ON LANTAU ISLAND, INVOLVES MAJOR LAND RECLAMATION, URBAN DEVELOPMENT AND TRANSPORT INFRASTRUCTURE CONSTRUCTION.
11.
12.
THIS IS A COPY
THE ORIGINAL HAS BEEN
CLOSED UNDER
FOI EXEMPTION NO. 27.6.1.)
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