21.
The pro-Peking Democratic Alliance for the Betterment of
Hong Kong (DAB), was formed in May 1992. It is represented in the Legislative Council by the Trade Union candidate. In the
1991 elections pro-China groups won just under 8% of the vote
and no seats.
New Airport
22.
In October 1989 the then Governor of Hong Kong announced plans for the development of a new international airport at Chek Lap Kok to replace the existing one at Kai Tak. During 1989 and 1990 it became clear that the private sector wanted to see firm support from China for the project before they would commit substantial funds whose repayment period would extend well beyond 1997. After protracted discussions, the British and Chinese Prime Ministers signed a Memorandum of
Understanding (MOU) on the airport and related infrastructure projects in Peking in September 1991.
23. The key points of the MOU are that China undertook to
support the construction of the new airport; adopt a positive attitude to necessary and reasonable borrowing by the Hong Kong Government; and indicate to potential investors that
contracts will be honoured after 1997. The Hong Kong Government undertook to complete as many as possible of the airport core projects before 30 June 1997; to consult the Chinese side on borrowing of over HK$5 billion with maturities after 1997; and to plan their finances with the firm objective
of leaving not less than HK$25 billion in their fiscal
reserves in 1997.
24. To facilitate cooperation, the MOU established an
Airport Committee under the JLG to act as a forum for
consultation on the granting of major airport contracts and
ipu.conf.PR
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