CONFIDENTIAL

HKA 18217

30 MAR 1992

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FROM:

PF Ricketts

Tel to Mary Kory recording the Minister's agreemen

Dread the

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PS/Lord Caithness

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Hong Kong Department

DATE:

30 March 1992

CC:

Sir J Coles

MR Burns

Mr Broadbent,

Economic Advisers

A

HONG KONG NEW AIRPORT: AIRPORT COMMITTEE PAPER ON

FINANCIAL ARRANGEMENTS BETWEEN THE HONG KONG GOVERNMENT AND

THE AIRPORT AUTHORITY

1.

17

Further to my submission of 27 March, I now attach the draft paper which Hong Kong proposes to put to the Airport

Committee. Hong Kong want to hand over the paper to the

Chinese on Wednesday 1 April and have therefore asked for

our comments before then.

2.

-

There is little new in the paper, it is clearly

presented and gives more information and background than the

Executive Council memorandum it is based on. This is

helpful in at least one respect the completion and debt

servicing undertakings. Paragraphs 40 42 outline these undertakings and indicate that, in all but worst case

senarios, the surplus revenue from Kai Tak and the passenger

terminal charge should be sufficient to service the Airport

Authority's debt obligations.

MVSAEU/1

CONFIDENTIAL

21

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