ARE WE STILL KEEPING TO THE MEMORANDUM OF UNDERSTANDING (MOU)?
WHY DID HONG KONG GOVERNMENT
PROCEED WITH THE AIRPORT PLATFORM CONTRACT WITHOUT REACHING AGREEMENT ON
FINANCING WITH THE CHINESE?
The Airport MOU requires us to complete as much as possible of the Airport Core Programme before
We intend to
1997.
fulfil this responsi- bility. We have not deviated from the MOU in our financing proposals, nor in the way we are proceeding with the project.
This decision was taken because the MOU requires us to maintain momentum on the airport and avoid expensive cost increases. Hong Kong is not going- it-alone but pursuing a prudent step-by-step approach, with the door left open for agreement with the Chinese side on the overall financing arrangements.
CONTRACTS AND FRANCHISES (defensive)
CHINESE THREATS NOT TO HONOUR?
Under the Joint
Declaration and the Basic Law contracts and franchises signed by the Hong Kong Government will continue to be valid after 1997. The Hong Kong authorities have in the past discussed a number of such contracts with the Chinese; a senior Chinese official Lu Ping, (Loo Ping) confirmed recently that China would continue to take a positive attitude.