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151035 MDLIAN 6233
MINISTER KARL BILDT HAD DECLINED TO COMMENT ON THE SINO-BRITISH ROW OVER HONG KONG'S POLITICAL DEVELOPMENT BUT ONLY SAID THAT IN THE LONG RUN DEMOCRACY AND THE RULE OF LAW WERE IMPORTANT TO HONG KONG'S STABILITY.
AIRPORT
28. COMMENTING ON THE GOVERNMENT'S DECISION TO EXTEND THE TENDER VALIDITY DATE FOR THE CENTRAL AND WANCHAI RECLAMATION FOR A FURTHER MCNTH, ZHANG JUNSHENG WAS QUOTED (2.4) AS BLAMING THE BRITISH HONG KONG ADMINISTRATION FOR THE DELAY AND NOT ADHERING TO THE AIRPORT MOU.
29. THE HONG KONG ECONOMIC JOURNAL (3.4) QUOTED GOVERNMENT SOURCES AS SAYING THAT THE GOVERNMENT WOULD SHORTLY APPROACH LEGCO FOR FUNDING TO ENABLE THE PAA TO CONTINUE ITS OPERATIONS. SOURCES SAID THAT THE GOVERNMENT WOULD NOT RAISE A THIRD FINANCIAL PACKAGE FOR THE TIME BEING AS THE PREVIOUS TWO PROPOSALS HAD BEEN REJECTED BY THE CHINESE SIDE WHO HAD NOT GIVEN ANY REASONS FOR THEIR REJECTION. THE SOURCES SAID THAT THE GOVERNMENT WOULD CONTINUE TO HANDLE THE AIRPORT ISSUE IN A STEP BY STEP APPROACH ADDING THAT IT WOULD NOT GIVE UP THE AIRPORT RAILWAY SO AS TO MEET DEMANDS OVER THE FINANCING OF THE NEW AIRPORT.
30. THE OREINTAL DAILY NEWS (3.4) QUOTE NAPCO DEPUTY DIRECTOR CLINTON LEEKS AS SAYING THAT THE GOVERNMENT HAD REACHED AN AGREEMENT WITH THE MTRC THAT THE AIPORT RAILWAY BETWEEN CHEK LAP KOK AND TSIM SHA TSUI WOULD BE COMPLETED BY THE TIME THE AIRPORT COMMENCED ITS OPERATION, REGARDLESS OF THE COMMENCEMENT DATE OF THE CENTRAL WAHCHAI RECLAMATION WORKS. QUOTING SOURCES, THE REPORT SAID THAT THE MTRC HAD ALSO REACHED A NEW FINANCIAL AGREEMENT WITH THE GOVERNMENT WHICH WOULD INCREASE CAPITAL INJECTION TO 19 BILLION SO THAT ALL CALLABLE EQUITY COULD BE
REMOVED.
31.
HOWEVER, SCMP (3.4) QUOTED GOVERNMENT SOURCES AS SAYING THAT THE BRITISH SIDE MIGHT CONSIDER DRAWING UP A THIRD FINANCING PLAN FOR FUNDING THE PAA AND THE MTRC IN ORDER TO GET AN EARLY AGREEMENT WITH CHINA. IN WORKING OUT THAT PLAN, THE SOURCES SAID THAT THE GOVERNMENT WOULD NOT RULE OUT THE POSSIBILITY OF DROPPING THE REQUIREMENT FOR INVESTING THE SAR LAND FUND. BUT THE SOURCES STRESSED THAT THE GOVERNMENT WOULD BE RELUCTANT TO TRY OUT ANY NEW FINANCING PLAN IF IT WAS NOT LIKELY TO SUCCEED.
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