CONFIDENTIAL
HKA 182/7
017223
MDHOAN 1815
TOP COPY Q DIST ?
CONFIDENTIAL
FM FCO
TO DESKBY 24003OZ HONG KONG
TELNO 538
OF 23163OZ MAR 92
INFO IMMEDIATE PEKING, UKREP JLG HONG KONG
2413
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YOUR TELNO 854: FINANCIAL ASPECTS OF THE AIRPORT CORE PROGRAMME
THANK YOU FOR THE OPPORTUNITY TO COMMENT ON YOUR TUR AND THE PAPER. THE FOLLOWING ARE SOME QUICK INITIAL THOUGHTS.
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THE PAPER PRESENTS A GENERALLY ENCOURAGING PICTURE. BUT IT IS CLEARLY VERY IMPORTANT THAT ANYTHING SAID TO THE CHINESE AND PUBLICLY AT THIS STAGE SHOULD BE CONSISTENT WITH THE PAPER THAT YOU WILL BE PUTTING TO THE AIRPORT COMMITTEE ON FINANCIAL SUPPORT FOR THE PROVISIONAL AIRPORT AUTHORITY. WE HAVE NOT YET SEEN THIS PAPER. WE NOTE FROM YOUR TELNO 751 THAT YOU ANTICIPATED PUTTING A PAPER ON THIS ISSUE TO THE AIRPORT COMMITTEE ON 25 MARCH. TIMETABLE HAS SLIPPED? IT WOULD BE VERY HELPFUL TO HAVE AN OPPORTUNITY TO COMMENT ON THAT PAPER WHEN IT IS READY. IT WOULD ALSO BE USEFUL TO KNOW WHETHER THE PAPER FAXED TO US HAS TAKEN ACCOUNT OF THE DEVELOPING CREDIT AGENCY REACTIONS TO THE VARIOUS PROJECTS ALREADY OUT FOR TENDER. DOES THE PAPER REFLECT THE TENDERS JUST RECEIVED FOR THE AIRPORT PLATFORM?
ARE WE RIGHT TO ASSUME THAT THIS
3. WE WOULD WELCOME CLARIFICATION AS TO WHY IT IS ESSENTIAL FOR YOU TO MAKE THIS PAPER AVAILABLE TO THE CHINESE MORE OR LESS STRAIGHTAWAY FOLLOWING EXCO DISCUSSION. WE ARE VERY CONSCIOUS THAT YOU ARE UP AGAINST EXTREMELY TIGHT DEADLINES. BUT AS WE UNDERSTAND IT, THE PRESENT PAPER IS NOT PART OF THE FORMAL PROCESS OF SECURING CHINESE AGREEMENT TO THE AIRPORT PROJECT. WOULD IT BE POSSIBLE TO TAKE STOCK FOLLOWING EXCO DISCUSSION AND IN THE LIGHT OF THE FOLLOWING DETAILED COMMENTS?
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ON THE PAPER ITSELF, IT IS GOOD NEWS THAT THE COST TO HKG HAS REMAINED AT HK DOLLARS 59.3 BILLION LEAVING ASIDE THE CONTINGENCY OF HK DOLLARS 2.5 BILLION. COULD YOU PLEASE CLARIFY FOR US WHY IT IS THAT THE INCREASES IN THE COSTS OF THE PROJECTS FUNDED BY THE GOVERNMENT (PARA 7A OF THE PAPER) DO NOT HAVE THE AFFECT OF INCREASING THE OVERALL COST TO HKG. IS THIS ALL ACCOUNTED FOR BY THE REALLOCATION OF COSTS TO THE MTRC? IT WOULD BE HELPFUL TO HAVE YOUR ESTIMATE OF WHAT THESE PRICES
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