UNCLASSIFIED
174621 MDLIAN 0333
UNCLASSIFIED
FM HONG KONG
TO PRIORITY FCO
TELNO 995
OF 212020Z JUNE 1993
INFO ROUTINE HKGO LONDON, PEKING, UKREP JLG HONG KONG
INFO ROUTINE HKGO WASHINGTON, HKGO NEW YORK, HKGO SAN FRANCISCO INFO ROUTINE HKGO GENEVA
HONG KONG FUTURE: PRESS COVERAGE: (12.6 21.6)
FINAL PART OF TWO
AIRPORT
20. THE AIRPORT COMMITTEE MEETING ON 18 JUNE WAS WIDELY REPORTED (19.6). GUO FENGMIN WAS QUOTED AS SAYING THE MEETING HAD ALSO DISCUSSED THE FINANCIAL ARRANGEMENTS FOR THE AIRPORT AND THE AIRPORT RAILWAY, BUT SINCE DIFFERENCES STILL EXISTED, FURTHER MEETINGS WOULD BE REQUIRED. UKREP JLG WAS REPORTED TO HAVE SAID THE CHINESE HAD RESPONDED TO THE NEW FINANCING PACKAGE AND PROGRESS HAD BEEN MADE AT THE MEETING. HK ECONOMIC JOURNAL QUOTED CHINESE SOURCES AS SAYING THAT THE NEW FINANCING PACKAGE WAS MORE REASONABLE THAN THE PREVIOUS ONE, BUT STILL FELL SHORT OF THE PROVISIONS OF THE AIRPORT MOU. ACCORDING TO THE SOURCES THE CHINESE HOPED TO REACH AN AGREEMENT ON THE FINANCIAL ARRANGEMENTS AS SOON AS POSSIBLE: THEY WANTED THE AIRPORT TO BE BUILT EVEN IF THE CONSTITUTIONAL TALKS WERE NOT SUCCESSFUL.
21. VARIOUS MEDIA REPORTS (19.6) QUOTED CHINESE SOURCES ON THE CHINESE AGREEMENT TO THE WESTERN HARBOUR CROSSING. SING TAO DAILY QUOTED CHINESE SOURCES AS SAYING CHINESE SUPPORT FOR THE PROJECT DID NOT IMPLY THE FINANCING ARRANGEMENTS COULD BE EASILY RESOLVED. TVB QUOTED A CHINESE SOURCES AS SAYING CONSENT WAS GIVEN BECAUSE THE TUNNEL PROJECT HAD NO DIRECT CONNECTIONS WITH THE AIRPORT RAILWAY. HK COMMERCIAL DAILY STRESSED CHINESE AGREEMENT TO THE FRANCHISE WAS OUT OF CONSIDERATION FOR HK'S ECONOMIC DEVELOPMENT AND HAD NO CONNECTION WITH PARTICIPATION OF CHINESE ENTERPRISES IN THE PROJECT. THE PAPER SAID THE CHINESE SIDE WOULD ADOPT THE SAME POSITIVE ATTITUDE TO OTHER FRANCHISES STRADDLING 1997 PROVIDED THE BRITISH SIDE WERE SINCERE TOWARDS THE
NEGOTIATIONS.
JLG
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