CALL ON LORD CAITHNESS BY MR RICHARD ALLEN, CHIEF EXECUTIVE

HONG KONG AIRPORT AUTHORITY ON 17 SEPTEMBER

Points to Make

Statutory/administrative framework

Happy

- Acknowledge size of the task and responsibility.

with decision making framework? (PAA to become AA; HKG with

power to direct; tendering procedures). Airport Committee under JLG to consulted on major franchises. Foresee any problems?

Cost Increases

Note cost of airport platform and associated work has increased since last year by 15% (HKD 37.8 bn to HKD 43.6 bn at 1991 prices). Reasons?

Are suitable measures being taken to restrict such cost rises in the future? Fixed price contracts perhaps as are being proposed by HKG for other contracts?

Degree of

- Your recent visit to Australia and Japan. interest in projects? Availability of financial support?

-

Has HKG decided to underwrite any AA debt or are you on your own?

(HKG equity injection of HK$13.8 bn).

ECGD Cover

- Assume you will be raising question of ECGD cover with Tim Sainsbury and with Malcolm Stevens (ECGD).

BUSALB/1

TG

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