programmes and parties, without the constraints that membership of the Executive Council must impose.
The Chief Executive
26.
The Government has not yet discussed with the Chinese
Government the machinery for the selection of the First Chief Executive (3.18). We intend to do so at an appropriate time.
(ii) Airport and Related Infrastructure Projects
27. In October 1989 the then Governor of Hong Kong announced
plans for the long term development of Hong Kong's port and
airport, including the construction of a new international airport
at Chek Lap Kok to replace the existing one at Kai Tak. The plan called for the new airport to open in 1997 with one runway in
operation.
28.
The Hong Kong Government estimate the cost of the new
airport, including the associated road and rail links, to be
HK$112.2 bn (£10.0 bn) at March 1991 prices. They intend that some 60% of the cost will be met by the private sector taking on
commercially attractive projects and financing.
29. 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 in
September 1991.
The Memorandum of Understanding (MOU)
30. The key points of the MOU are that China pledged 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
select.cttee.PR.JRB