the Annex to this Memorandum and any of the current Airport Core Programme projects in the Annex for which the bulk of government expenditure will fall after 30 June 1997. Such projects will only be initiated if the two sides have reached a common view concerning them.
D. The Chinese Government will adopt a positive attitude to necessary and reasonable borrowing by the Hong Kong Government to be repaid after 30 June 1997. If the total amount of debt to be repaid after 30 June 1997 will not exceed HK Dollars 5 billion, the Hong Kong Government will be free to borrow as necessary while informing the Chinese Government. If the total amount of such debt will exceed HK Dollars 5 billion such borrowing will only proceed if a common view has been reached concerning the proposal.
E. On the basis of the above understandings the Hong Kong Government will plan its finances with the firm objective that the fiscal reserves on 30 June 1997 to be left for the use of the Hong Kong Special Administrative Region Government will not be less than HK Dollars 25 billion.
F. In order to facilitate the construction of the new airport in Hong Kong there will be established an Airport Authority and a Consultative Committee.
(i) The Airport Authority Ordinance will be modelled as far as possible on the Mass Transit Railway Corporation Ordinance. The Hong Kong Government will retain power to direct the Authority and responsibility for key areas of policy up to 30 June 1997. The Hong Kong Government will be willing to consider and take into account views of the Chinese side when the Hong Kong Government is drawing up the draft bill on the Authority.
ASHAHA/3