UNCLASSIFIED
FM HONG KONG
TO PRIORITY FCO
TELNO 1012
OF 03101OZ APRIL 91
UNCLASSIFIED
門
Murz 3d
044314
MDLIAN-0487
Am 1891
TOP COPY Q DIST? Kf
INFO ROUTINE HKGO LONDON, PEKING, UKREP JLG HONG KONG
INFO ROUTINE HKGO WASHINGTON, HKGO NEW YORK, HKGO SAN FRANCISCO INFO ROUTINE HKGO GENEVA, UKMIS GENEVA
M
HONG KONG AGREEMENT: PRESS COVERAGE: WEEKLY ROUNDUP (28.3 3.4).
SUMMARY
1. THE AIRPORT PROJECT AND THE VISIT BY THE FOREIGN SECRETARY TO PEKING REMAINED A FOCUS OF MEDIA ATTENTION.
AIRPORT
2. THE HK ECONOMIC JOURNAL (22.3) QUOTED SOURCES CLOSE TO THE STATE COUNCIL'S HK AND MACAU AFFAIRS OFFICE AS SAYING THAT THE CHINESE AUTHORITIES WERE AWAITING A REPLY FROM THE HK GOVERNMENT TO THEIR PROPOSALS FOR THE AIRPORT AND THAT BOTH CHINA AND HK DID NOT INTEND TO HOLD A FOURTH ROUND OF EXPERT TALKS. THE SOURCES SAID THAT THE CHINESE HOPED THAT THE HK GOVERNMENT WOULD PROMISE TO LEAVE TO THE SAR GOVERNMENT AN AMPLE AMOUNT IN THE FISCAL RESERVES, ON TOP OF THE LAND FUND. R-1 AND R-3 (24.3), QUOTING PEKING SOURCES, REPORTED THAT THERE WERE STILL SUBSTANTIAL DIFFERENCES BETWEEN HK AND CHINA OVER THE NEW AIRPORT BUT THAT BOTH SIR DAVID WILSON AND LU PING HAD MOVED CLOSER IN THEIR VIEWS CONCERNING THE SETTING UP OF A CONSULTATIVE COMMITTEE AND CHINA'S
PARTICIPATION IN THE AIRPORT AUTHORITY.
3. ZHOU NAN WAS QUOTED IN THE SCMP (27.3) AS SAYING THAT HE FEARED THAT HK WOULD FACE A SERIES OF DEFICIT BUDGETS UP TO 1997 AND THAT THE FUTURE SAR GOVERNMENT WOULD FACE FINANCIAL DIFFICULTIES FROM DAY ONE. HE ADDED THAT IF THIS WAS TO BE THE CASE, THE SAR GOVERNMENT WOULD BE LEFT WITH NO ALTERNATIVE BUT TO RAISE TAXES TO GENERATE REVENUE. THE HK STANDARD (27.3) NOTED
THAT THE BANK OF CHINA IN ITS HK-MACAU ECONOMIC QUARTERLY REPORT URGED THE HK GOVERNMENT TO TAKE SERIOUS MEASURES TO CONTROL ITS EXPENSES IN THE DEVELOPMENT OF INFRASTRUCTURAL PROJECTS. SENIOR LEGCO MEMBER ALLEN LEE WAS QUOTED (1.4) AS SAYING THAT HE WAS AGAINST ANY GOVERNMENT COMMITMENT TO HAND OVER A SUM OF RESERVES TO THE SAR GOVERNMENT AND THAT THE HK GOVERNMENT SHOULD DISCLOSE THE TOTAL AMOUNT IN THE EXCHANGE FUND, INCLUDING THE SIZE OF THE
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