CONFIDENTIAL
0 522
MDHIAN 0308
Lot Soo
же
(E) 21 MAY. THE AD HOC GROUP AND THE AIRPORT CONSULTATIVE COMMITTEE WILL MEET. A SUMMARY OF OUR NEW AIRPORT FINANCING PROPOSAL WILL BE TABLED AT THOSE MEETINGS. WE HAVE CONSIDERED WHETHER THERE WOULD BE ADVANTAGE IN ISSUING THE NEW AIRPORT FINANCING PROPOSAL ON 18 MAY, TOGETHER WITH THE PAPER ON PAA FUNDING. BUT WE FEAR THAT WOULD GIVE THE CHINESE THREE DAYS IN WHICH TO CRITICISE THE PROPOSAL IN THE RUN UP TO THE NEXT ROUND OF TALKS ON THE 1994/95 ELECTORAL ARRANGEMENTS. WE DO NOT WANT TO SOUR THE ATMOSPHERE IMMEDIATELY BEFORE THE THIRD ROUND. IF THE PROPOSAL IS MADE PUBLIC ON THE FIRST DAY OF THE THIRD ROUND, THE CHINESE MAY BE PREOCCUPIED WITH THAT AND HAVE LESS TIME TO BE CRITICAL ON THE AIRPORT.
(F) 28 MAY. MEETING OF FINANCE COMMITTEE.
3. PUBLIC CHINESE COMMENTS DO NOT ENCOURAGE US TO BELIEVE THAT OUR NEW PROPOSAL WILL BE TREATED SERIOUSLY BY THEM. THEY HAVE GONE BACK TO THEIR OLD THEME OF COST-EFFECTIVENESS AND THEIR CLAIM THAT PAA AND MTRC BORROWING FALLS WITHIN THE GOVERNMENT BORROWING LIMIT OF HKD 5 BILLION. WE ARE PREPARING DEFENSIVE PUBLIC LINES ON THESE POINTS AND WILL FAX THEM TO YOU LATER IN THE WEEK.
PATTEN
YYYY
MAIN
.HK FINANCIAL
.(DIALOGUE)
НКО
25
DISTRIBUTION
35
RAD//MR WYE
PS
PS/MR GOODLAD
PUSD//HD
ECONOMIC ADVISERS//HD
ERD//HD
PS/PUS
SIR J COLES
MR HUM
FED//HD
ADDITIONAL
10
CAOFF //SIR R BRAITHWAITE
BANK ENG//MR LATTER
PAGE
CONFIDENTIAL
2
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