After friendly discussions in Beijing between

representatives of the Government of the People's Republic

of China and representatives of the Government of the United

Kingdom of Great Britain and Northern Ireland from

27-30 June 1991, the two Governments, bearing in mind

the urgent need for a new airport in Hong Kong in order to

ensure and develop its prosperity and stability,

the need for the airport project to be cost-effective and

not to impose a financial burden on the Government of the

Hong Kong Special Administrative Region of the People's

Republic of China after 30 June 1997, and

the need for practical and workable arrangements to allow work connected with the new airport to be carried out

speedily and efficiently,

have reached the following understandings:

A. Between now and 30 June 1997 the Hong Kong Government will complete the Airport Core Programme projects listed in the Annex to this Memorandum of Understanding to the maximum extent possible. The Hong Kong Government will be responsible for the construction of projects covered by this

Memorandum up to 30 June 1997.

B. The Chinese Government will support the construction of

the new airport and related projects. It will indicate

clearly to interested potential investors in accordance with 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

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