CALL ON THE SECRETARY OF STATE BY MR FREDERICK FUNG, 18 MAY
Points to Make
THE AIRPORT
- We have noted some encouraging remarks made recently by senior Chinese officials about financing plans for the new airport. Good if they are ready to be more flexible.
- We have always said we are ready to take discussions forward
as soon as it becomes possible to do so on the merits of the
Hope that will be soon.
case.
(If raised)
(cf. bachgramed)
The $5 billion figure in the MOU was not intended to be a ceiling. The MOU states that debt can exceed $5 billion if the two sides reach a common view on the proposal concerned.
- We do not need Chinese agreement to use the Hong Kong Government part of the Land Fund, or the reserves, as equity
Borrowing from the Land Fund is an interesting idea. But surely this is no different from our earlier proposal of using
some of the SAR Land Fund before 1997. In 1997 the Fund will
become part of the SAR Reserves and the loan would therefore not have to be repaid. Indeed there would be no one to repay it to.
TALKS WITH CHINA ON ELECTORAL ARRANGEMENTS
Two rounds of talks have been held in a businesslike
atmosphere. We look forward to the third round later this
month.
pts.fung.PR.JRB