which to meet possible difficult years ahead and to continue to improve social services.

Airport Financing

Discussions with the Chinese are continuing and we hope will soon reach positive conclusion. Subject is complex and

numbers are large. Understandable that Chinese want to review carefully. But they are committed by Airport MOU to

support the project.

Airport

- Is essential for Hong Kong. Most people agreed on that.

We fully support Hong Kong Government on this major endeavour. It will create marvellous opportunities for many businesses and lay a firm foundation for futher progress

well into the next century.

Award of Tsing-ma Bridge Contract to AJC

-

Entirely a decision for and by the Hong Kong Government.

- Not a case of any special favours to Britain. The two British companies involved have enormous experience in

building large bridges. They won the project against fierce

competition and in a fair fight.

-

Not for me to comment on the Hyundai bid.

JLG Issues/LegCo

- JLG discussions must, of course, be confidential.

But

clearly important that LegCo's views on the issues is taken

fully into account. Good dialogue with the adminstration

PUBACE/3

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