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MDLIAN 6935.
THE AIRPORT DISPUTE COULD NOT BE SETTLED.
THE PLAN WAS OUTLINED IN AN INTERNAL DOCUMENT SENT TO PROVINCIAL, MILITARY AND MINISTRY OFFICIALS. THE SCMP (17.11) NOTED CHINA WAS CONSIDERING THE OPTION OF LEASING THE SHENZHEN AIRPORT SITE TO THE HK SAR AS AN ALTERNATIVE. PREMIER LI PENG WAS SAID TO HAVE GIVEN HIS PERSONAL BACKING TO THE PLAN, WHICH HK AVIATION SOURCES THOUGHT WAS IMPRACTICAL.
5. FURTHER REMARKS BY A SPOKESMAN FOR THE CHINESE JLG TEAM ON THE AIRPORT WERE WIDELY NOTED (16.11). REPORTS NOTED THAT THE CHINESE SIDE EXPLAINED IN DETAIL WHY THEY CONSIDERED BRITAIN HAD REJECTED THEIR EARLIER SUGGESTION TO GO AHEAD WITH THE PLATFORM PROJECT. THEY CLAIMED THE BRITISH SIDE NOW WENT BACK ON THEIR WORDS AND TRIED TO USE THE CHINESE SUGGESTION AS AN EXCUSE TO GO AHEAD ALONE WITH THE AIRPORT PROJECT. THE STATEMENT NOTED THE SITUATION HAD CHANGED SINCE JULY AND THE CHINESE SUGGESTION HAD LOST ITS ORIGINAL MEANING. THE CHINESE SIDE THEREFORE HAD TO STATE CLEARLY THEY WOULD NOT SUPPORT ANY UNILATERAL ACTION BY THE BRITISH SIDE WHICH WAS IN BREACH OF THE MOU.
6. REPORTS NOTED (16.11) A HK GOVERNMENT SPOKESMAN REPEATED THEY WERE MERELY EXAMINING WAYS OF MOVING AHEAD WITH THE PROJECT USING A STEP BY STEP APPROACH. THIS WAS NOT A 'GO IT ALONE' OPTION AND WAS IN ACCORDANCE WITH THE MOU.
PAPERS NOTED (18.11) THAT DESPITE STRONG CHINESE OBJECTION, EXCO DECIDED THAT THE GOVERNMENT SHOULD SEEK FUNDS FROM THE LEGCO FINANCE COMMITTEE FOR INJECTION INTO THE PAA SO THAT THE AIRPORT SITE FORMATION CONTRACT COULD BE AWARDED BEFORE ITS VALIDITY EXPIRED AT THE END OF THIS MONTH. IT WAS BELIEVED THE DECISION WAS BASED ON ECONOMIC CONSIDERATIONS AS A FURTHER DELAY WOULD RESULT IN COST INCREASE.
8.
REPORTS NOTED PROMINENTLY (20.11) THE GOVERNMENT'S DECISION TO SEEK FUNDS FROM THE FINANCE COMMITTEE TO ENABLE THE PAA TO AWARD THE AIRPORT SITE FORMATION CONTRACT BEFORE THE END OF THIS MONTH. A GOVERNMENT SPOKESMAN WAS NOTED AS SAYING THE DECISION WAS MADE TO FULFIL THE OBLIGATIONS UNDER THE MOU WHICH STIPULATED THE HKG SHOULD COMPLETE AS MUCH OF THE CORE PROJECTS AS POSSIBLE BY JUNE 1997: WHILE THE FIRST PRIORITY WOULD BE TO CONTINUE TO TRY TO REACH AN AGREEMENT WITH THE CHINESE ON THE OVERALL FINANCIAL ARRANGEMENTS. THE FINANCIAL SECRETARY, HAMISH MACLEOD SAID IF THE GOVERNMENT DEFERRED THE DECISION, THEN COSTS WOULD BE INVOLVED AS WELL AS SLIPPAGE AND THE HKG COULD ARGUABLY BE
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