SUPPLEMENTARIES: HONG KONG: INTERNAL
POLITICAL
CHANGE OF POLICY?
WHY INTRODUCE DEMOCRACY NOW?
There has been no change in our policy of co- operating with China over Hong Kong. We know this is what Hong Kong wants. We would welcome a calm and constructive dialogue with China.
Strong local institutions are a key part of main- taining Hong Kong's way of life, including the rule of law which is crucial to business confidence. Broadening of democracy and
economic success are not incompatible, quite the contrary.
NEW AIRPORT
NEED FOR NEW AIRPORT?
All agree that Hong Kong needs a new airport if it is to remain an international trade and financial centre.
Have done our very best to take account of Chinese problems with financing arrangements.
Believe that agreement could be reached quickly if financing issues tackled on their merits.
In the meantime, we are maintaining momentum on the airport to avoid expensive cost increases and slippages.
The project represents excellent value for money. Any substantial cost reduction would compromise the scope of the project and would not lead to the construction of the first rate airport which Hong Kong needs.