AUG 22 '91 11:15 BRITISHEMBASSYPEKING
IDENTIC (14
WTC
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;
(ii) The British side will consult the Chinese side within the
Airport Committee before the Hong Kong Government proceeds with
any major airport project other than those in the Annex to this
Memorandum and any of the current Airport Core Programme projects
in the Annex for which the bulk of government expenditure will
fall after 30 June 1997. Such projects will only be initiated if
the two sides have reached a common view concerning them.
D. The Chinese Government will adopt a positive attitude to
necessary and reasonable borrowing by the Hong Kong Government to
be repaid after 30 June 1997. If the total amount of debt to be
repaid after 30 June 1997 will not exceed HK Dollars 5 billion,
the Hong Kong Government will be free to borrow as necessary while
informing the Chinese Government. If the total amount of such
debt will exceed HK Dollars 5 billion such borrowing will only
proceed if a common view has been reached concerning the proposal.
E. On the basis of the above understandings the Hong Kong
Government will plan its finances with the firm objective that the
fiscal reserves on 30 June 1997 to be left for the use of the Hong
Kong Special Administrative Region Government will not be less
than HK Dollars 25 billion,