Page
CONFIDENTIAL
XCX(92)66
that we are ready and able to proceed with the project, but would like to know if they have any objection. We would point out that the project is fully funded by the Hong Kong Government without borrowing. No franchises are involved. The project would be completed by the end of 1996. To proceed with the project now would be fully in accordance with the MOU.
9
We would make the point that on completion, the land created would result in substantial premium revenue to the SAR Government, including at least $9 billion arising from the MTRC's proposed developments above the AR terminus.
10
We estimate that it would require up to two weeks to obtain a optimistic?
considered reply from them. As soon as a response is obtained, we will revert to the Council with an assessment of whether we can gain sufficient support in Finance Committee for funding of the project. If we decide to proceed, it will be necessary to negotiate with the tenderers for an extension of the contract validity period at least up to the end of January 1993. Enquiries are already being made.
PUBLICITY AND PUBLIC REACTION
11
It is not proposed to make our approach to the Chinese side public at this stage.
12
The public is aware that a decision on the CWR is due during December. There will be increasing interest in how we propose to proceed. We shall answer questions by reference to our established "step-by-step" approach, while acknowledging that a decision is needed by the end of the month on how to proceed.
13
Although there has been criticism of the AR plan from some sectors, it is understood that the project has widespread support in the districts - especially from those interested in having a rail link from Tsing Yi and the new town at Tung Chung to Central, and those concerned with the present congestion along the Nathan Road Corridor.