45
140226
MDLIAN 7926
RESTRICTED
FM BTC HONG KONG
TO PRIORITY FCO
TELNO 186
OF 111026Z JUNE 91
RESTRICTED
HKCO20/1
AND TO PRIORITY PEKING, DTI, LISBON, HONG KONG
p.a.
масли
CS
146
IN DTI FOR PEP/1 AND OT/2.
FROM BTC AS CONSULATE GENERAL.
STANLEY HO AND NATIONAL DAY CELEBRATIONS IN MACAU.
SUMMARY
STANLEY HO GLOOMY ABOUT MACAU AIRPORT'S FINANCES. MACAU GOVERNOR COMMITTED TO DEMOCRATIC PLURALISM AND ECONOMIC DEVELOPMENT.
QUESTION MARK ON BOTH.
DETAIL
1. GRAHAM (ACTING CONSUL GENERAL) ATTENDED THE CAMOES (NATIONAL DAY) CELEBRATIONS IN MACAU, TRAVELLING OVER WITH STANLEY HO.
2. HO SAID GOVERNOR VIEIRA HAD PUT ALL MAJOR PROJECTS ON HOLD AND WOULD LOOK AT EACH ONE CAREFULLY BEFORE ALLOWING IT TO CONTINUE. VIEIRA'S OVER-RIDING CONCERN WAS TO AVOID WHITE ELEPHANTS. HO SAID THE PORTUGUESE, AND THEREFORE MACAU, GOVERNMENT WOULD AVOID GIVING GUARANTEES FOR THE COMPLETE AIRPORT PROJECT. HE HAD ASKED PRESIDENT SOARES TO HELP TREAT THE AIRPORT AS AN EXCEPTION BUT SOARES HAD REPLIED THAT PORTUGAL HAD GUARANTEED A HUGE DAM PROJECT IN MOZAMBIQUE YEARS AGO FOR WHICH THEY WERE STILL PAYING
AND WOULD NOT REPEAT THE MISTAKE IN MACAU.
3. HO SAID THE MACAU AIRPORT COMPANY (CAM) HAD ORIGINALLY RAISED 1.5 BILLION PATACAS (OR HK DOLLARS). THE MACAU GOVERNMENT WOULD GUARANTEE THEIR SHARE (0.5 BILLION) BUT WERE UNLIKELY TO INCREASE THEIR HOLDING. THE CHINESE GOVERNMENT HAD ALREADY REDUCED THEIR
HOLDING, THEREBY BRINGING IN EDMUND HO AND INCREASING HIS OWN HOLDING. SAMUEL MONTAGU, THE BANK OF CHINA AND BNU HAD MADE FINANCIAL PROPOSITIONS WORTH UP TO AN ADDITIONAL CIRCA 1.5
BILLION. THERE WAS NO SHORTAGE OF PEOPLE INTERESTED IN AN AIRLINE OR IN SUBSIDIARY CONTRACTS (UNITED AIRLINES WERE LOOKING AT AN ENGINEERING BASE, IN GENTLE COMPETITION WITH KAI TAK'S HAECO SEMI COLON FEDERAL EXPRESS AT A CARGO BASE), BUT NO ONE WANTED TO
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