UNCLASSIFIED
0
63
7
856
MDHIAN
4. THE ANNOUNCEMENT ON THE LAND COMMISSION MEETING DREW CONSIDERABLE MEDIA INTEREST. PRESS REPORTS NOTED THAT ZHOU NAN DECLINED TO COMMENT ON WHETHER THE LC MEETING INDICATED IMPROVEMENT IN SINO-BRITISH RELATIONSHIP. ZHOU MERELY SAID THE CHINESE SIDE HAD AGREED TO HOLD THE MEETING OUT OF THEIR CONCERN FOR THE LIVELIHOOD OF HONG KONG PEOPLE.
5. ATV LAST EVENING (5 MAY) QUOTED A CHINESE SOURCE AS SAYING THAT IT WAS NATURAL FOR THE LC TO MEET AGAIN. THE SOURCE ALSO DECLINED TO COMMENT ON THE IMPACT OF THE MEETING ON SINO-BRITISH TIES, BUT SAID THAT IT WAS A GOOD THING FOR THE TWO SIDES TO SIT DOWN AND TALK.
6. ACCORDING TO RTHK, CPPCC DELEGATE XU XIMIN HAD SAID THAT WITH THE RESUMPTION OF LC MEETINGS, HE EXPECTED THE JLG WOULD ALSO MEET SOON TO DISCUSS CONTRACTS STRADDLING 1997 SUCH AS `CT9.
NEW AIRPORT
·
7. LOCAL PRESS ALSO HIGHLIGHTED REMARKS MADE BY CHEN ZUO'ER OF HKMAO STATE COUNCIL ON THE NEW AIRPORT, IN HIS MEETING WITH THE ADPL YESTERDAY. ACCORDING TO LEUNG KWONG-CHEONG, CHEN SAID THAT OUR NEW PROPOSAL ON FINANCING ARRANGEMENTS WOULD BE ACCEPTABLE IF IT AIMED AT REDUCING BORROWINGS AND INCREASING GOVERNMENT INJECTION. AS THE LAND FUND WOULD BECOME PART OF THE SAR'S FISCAL RESERVES IT SHOULD BE USED PRUDENTLY. THE CHINESE DID NOT THINK THAT THE LAND FUND SHOULD BE INJECTED INTO THE NEW AIRPORT PROJECT: BUT COULD CONSIDER USING PART OF THE LAND FUND AS A LOAN TO THE PAA. CHEN ADDED THAT IN WORKING OUT A THIRD FINANCING PACKAGE, WE SHOULD FIRST CONSULT HONG KONG PEOPLE, PARTICULARLY THE ACC. THE PROPOSAL TO SET UP AN AIRPORT MONITORING COMMITTEE TO INCREASE THE TRANSPARENCY OF THE FINANCING ARRANGEMENTS COULD ALSO BE CONSIDERED.
8. CHEN ALSO STRESSED THAT IN DECIDING ON THE FINANCING ARRANGEMENTS FOR THE NEW AIRPORT, THE SIZE OF OUR EXCHANGE FUND, FISCAL RESERVES AND THE LAND FUND AND THE AMOUNT OF GOVERNMENT LOANS BY 1997 HAD TO BE TAKEN INTO ACCOUNT.
LEFT-WING COMMENTARIES
9. A COMMENTARY IN WEN WEI PO CONTINUED TO CRITICISE THE GOVERNOR'S REMARKS IN HIS INTERVIEW WITH UNITED DAILY NEWS. IT CONTENDED THAT WHAT THE GOVERNOR HAD DONE IN THE PAST SIX MONTHS
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