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A HUGE DEBT AFTER 1997. MR K Y YEUNG, STRESSED THAT THE PROPOSAL WOULD NOT AFFECT THE GOVERNMENT'S FINANCIAL RESERVES WHICH WERE
BILLION IN 1997. MR YEUNG DESCRIBED THE CONSTRUCTIVE AND VIABLE..
EXPECTED TO REACH 71 PACKAGE AS SENSIBLE,
5.
IT WAS NOTED (18.9) PEKING REACTED CAUTIOUSLY TO THE PROPOSAL. A SPOKESMAN FOR THE CHINESE FOREIGN MINISTRY, WU JIA MIN, DECLINED TO COMMENT AND SAID THAT A SOLUTION COULD BE FOUND IF BOTH SIDES ACTED IN ACCORDANCE WITH THE JD AND THE MOU.
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6. THE PRO-PEKING TA KUNG PO AND WEN WEI PO CRITICISED THE BRITISH PROPOSAL IN A NUMBER OF COMMENTARIES (18-22.9). THEY SAID THE PROPOSAL DID NOT MEET THE PRINCIPLE OF ''LOW COST AND HIGH EFFICIENCY'. THE BRITISH WERE PROPOSING TO SPEND MONEY BELONGING TO THE SAR AND THIS WAS NOT IN LINE WITH THE MOU AND THE JD. THE PAPERS ALSO SAID THAT BEFORE JUNE 1997, THE CORE PROJECTS WERE THE RESPONSIBILITY OF THE BRITISH GOVERNMENT WHO SHOULD FINANCE THEM. THEY CRITICISED THE BRITISH SIDE FOR BEING INSINCERE AND UNCONSTRUCTIVE. WEN WEI PO (22.9) SAID THE ''NEW PROPOSAL BY THE BRITISH SIDE DID NOT CHANGE THE ONE WHO WOULD BE FOOTING THE BILL WHICH WOULD STILL BE THE SAR GOVERNMENT. IT SAID THAT THERE WAS NO REDUCTION IN COST AND THE BRITISH SIDE HAD REFUSED TO PUT A CAP ON THE PROJECT. THE PAPER ALSO QUOTED SOURCES AS SAYING THAT WHEN THE SUBJECT OF LAND TRANSACTIONS ALONG THE RAILWAY WAS RAISED AT THE LAND COMMISSION MEETING, CHINESE SIDE HAD CLEARLY INDICATED THAT THE LAND SALES SHOULD BE INCLUDED IN THE ANNUAL QUOTA OF 50 HECTARES. THE BRITISH PROPOSAL CONTRAVENED THIS. THE SOURCE SAID THE BRITISH PROPOSAL DID NOT AIM TO PUT ALL HKG RESOURCES IN TO THE PROJECT, BUT SUGGESTED TO USE IN ADVANCE THE INCOME OF THE FUTURE SAR. THIS WAS OUTSIDE THE MOU. THE HK ECONOMIC TIMES NOTED (22.9) SOURCES CLOSE TO THE CHINESE SIDE SUGGESTED THAT AS HKG WOULD HAVE 71 BILLION RESERVES BY 1997, AND PUTTING ASIDE 25 BILLION TO BE LEFT TO THE SAR, THE BRITISH SHOULD PUT THE REMAINING 46 BILLION, OR PART OF IT, INTO THE PROJECT.
THE
7. THE FINANCIAL SECRETARY, HAMISH MACLEOD, DENIED (19.9) THAT THE NEW PROPOSAL CONTRAVENED THE MOU. HE SAID THE PROPOSAL HAD BEEN WORKED OUT BASED ON CHINESE SUGGESTIONS. HE SAID SINCE THE ADDITIONAL FUNDS WOULD BE LAND PREMIUMS GENERATED FORM EXTRA LAND SALES, IT WOULD NOT AFFECT THE FUTURE LAND FUND NOR SOCIAL SERVICE EXPENDITURE. THE SECRETARY FOR ECONOMIC SERVICES, ANSON CHAN, SAID THE BRITISH PROPOSAL WAS FLEXIBLE AND CONSTRUCTIVE AND IT WAS WORKED OUT IN RESPONSE TO CONCERN EXPRESSED BY THE CHINESE
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