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UNCLASSIFIED
072103
MDLIAN 8998
COVERING A VISIT BY OMELCO MEMBERS TO GUANGDONG SCHEDULED FOR LATER THIS WEEK, THE MEDIA REPORTED.
AIRPORT
11. THE SECRETARY FOR THE TREASURY, HAMISH MCLEOD, SAID IN AN INTERVIEW WITH THE ORIENTAL DAILY THAT THE COMING ROUND OF EXPERTS' TALKS ON THE NEW AIRPORT WOULD CONCENTRATE ON FINANCIAL ARRANGEMENTS. GOVERNMENT SOURCES WERE QUOTED (3.1) BY TVB AS SAYING THAT THE CHINESE SIDE WOULD BE INFORMED ABOUT THE TOTAL SPENDING ON ALL INFRASTRUCTURAL PROJECTS IN THE TERRITORY OVER THE NEXT 10 YEARS, BUT THAT IT WOULD NOT DISCLOSE TO CHINA SECRET INFORMATION ABOUT THE EXCHANGE FUND. ATV AND A FEW PAPERS (4 . 1) QUOTING SOURCES, REPORTED THAT HK OFFICIALS ATTENDING THE SECOND ROUND OF EXPERTS' TALKS WOULD NOT BE EQUIPPED WITH THE KIND OF FINANCIAL INFORMATION THAT THE CHINESE SIDE WAS LOOKING FOR AND THAT A STUDY REPORT ON THE SUBJECT WOULD NOT BE AVAILABLE UNTIL APRIL AT THE EARLIEST. HOWEVER, THE SOURCES SAID THAT THE GOVERNMENT WOULD INFORM CHINA THAT AT LEAST 40 PERCENT OF THE PROJECT COSTS WOULD BE BORNE THROUGH PRIVATE-SECTOR PARTICIPATION WHILE THE REMAINING 60 PERCENT WOULD BE RAISED THROUGH LOANS, THE ISSUING OF GOVERNMENT BONDS AND FUNDS FROM THE FISCAL RESERVE. DEPUTY SECRETARY FOR WORKS RAPHAEL HUI WAS QUOTED (7.1) AS SAYING THAT THE FINANCING METHODS WERE UNDER STUDY BY A FINANCIAL CONSULTANT AND THAT THE OPTIONS WOULD BE AVAILABLE FOR CONSIDERATION IN A FEW MONTHS. THE HK ECONOMIC JOURNAL (2.1) SAID THAT PEOPLE FROM THE INVESTMENT SECTOR GENERALLY CONSIDERED THAT SHOULD THE GOVERNMENT DECIDE ON RAISING FUNDS FOR THE NEW AIRPORT THROUGH THE ISSUING OF GOVERNMENT BONDS, THE BEST WAY TO PROCEED WOULD BE TO FOLLOW THE WAY IN WHICH THE EXCHANGE FUND BILLS WERE
ISSUED. THE FORMER SECRETARY-GENERAL OF THE BLDC, LEUNG CHUN- YING, WAS QUOTED (8.1) AS SAYING THAT IF THE GOVERNMENT FINANCED THE AIRPORT BY SELLING LAND, IT WOULD NOT BE GOOD TO THE PROPERTY MARKET. SENIOR EXCO MEMBER BARONESS DUNN WAS QUOTED (5.12) AS SAYING SHE WAS CONFIDENT THAT THE SECOND ROUND OF EXPERT TALKS WOULD YIELD GOOD RESULTS AS THE HK TEAM OF EXPERTS WOULD BE IN A POSITION TO CLARIFY QUERIES REGARDING THE FINANCIAL ARRANGEMENTS.
12. A DEPUTY DIRECTOR OF THE NCNA HK BRANCH, SHENG HUA, TOLD THE MEDIA (3.1) THAT IT WAS NOT KNOWN WHETHER THE HK GOVERNMENT WOULD GIVE NEW INFORMATION TO THE CHINESE SIDE ALTHOUGH IT WAS UNDERSTOOD THAT THE HK GOVERNMENT WOULD INFORM CHINA ABOUT ALL THE FINANCIAL ARRANGEMENTS. THE HEAD OF THE RESEARCH DEPARTMENT OF THE NCNA HK BRANCH, ZOU MU, WAS QUOTED BY THE PAPERS AS SAYING
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