OCT
450T92 10120
352 868 243.3/7.06
British side
to
I've said it's very difficult for nstantly to produce new proposals, all of which are criticised, but en no constructive ideas on how the financing might be done in .fferent ways, are put forward by the Chinese side.
What specifically did they say they didn't like about the eptember 16 plan?
r Galsworthy:
Well, they specifically rejected use of the Land Fund, thought, they gave no reasons for that.
2:
what about the airport rail? Will you abandon the airport rail?
Mr Galsworthy:
That's not a decision for the head of the Joint Liaison Group, I'm happy to say.
Q:
In November if no there is no suggestion from them, what will you be doing?
Mr Galsworthy:
The Hong Kong Government will have to take a decision on how to manage in that case.
Q:
Mr Galsworthy, was the use of the Land Fund contained in the China's original proposals that you based your proposals on that they rejected?
Mr Galsworthy:
No, it wasn't. Use of the land revenues was. It appears that they had in mind only that proportion of the land revenues which went to the Hong Kong Government. But use of the Land Fund is perfectly logical if you're going to re-invest the land revenues into the project and it's also entirely in accordance with the Joint Declaration. You ll find specific provisions in Annex Three of the Joint Declaration to that. The Chinese side had always assured us that they would take a reasonable and constructive attitude to any proposals for use of the Land Fund in that way.
Q:
And they're not?
Mr Galsworthy:
Well, they've said no on this occasion. without much explanation.
Q:
(Indistinct question about next meeting)
Mr Galsworthy:
No, no date has been set for a further meeting. Discussions on this inevitably will take place during the Governor's visit to Peking.
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