10-NOV-1992 18:01

INFORMATION CO-ORDINATOR.

+852 521 7058

P.04."

4.

GOVERNMENT-LEGCO COMMITTEE

Line to Take

open-minded about the

We remain entirely proposal. It is an attempt to identify a mechanism to facilitate discussion on the handling of the Government's legislative and financial programmes. Legco members have said it is difficult for them to agree on who they

they should

should nominate to sit on the We will therefore continue with the existing channels of communication for the time being.

LegCo would

would like to proceed with the Committee and on its composition, we would be very willing move ahead with the idea. But if Legco remain unconvinced, so be it.

Committee.

If

can agree

to

5. THE AIRPORT AND THE SITE PREPARATION CONTRACT

Line to Take

We are examining ways of moving ahead with the airport project, in line with the MOU. Our preferred option remains agreement with China on the financing packages. for the airport and airport railway. But if that is not immediately possible, we will examine options for a step by step approach that enables us to carry out our obligations under the MOU in a practical, realistic, and non-confrontational way. The first such step will be a decision on how to go ahead with the airport site preparation contract, which the Chinese side suggested in July we should finance directly in advance of an overall agreement.

If pressed on whether this is a go-it-alone approach in defiance of China's views: This is not, and never has been, 2 go-it-alone option. It is a step by step approach in accordance with the MOU, aimed at maintaining progress on the project.

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