UNCLASSIFIED
4057
MDHIAN 9388
ADHERE TO THE MOU AND AS LONG AS THE PROJECT WAS CARRIED OUT ON THE BASIS OF COST-EFFECTIVENESS, THEY WOULD NOT ONLY SUPPORT THE CONSTRUCTION BUT WOULD SINCERELY HOPE THAT THE PROJECT COULD BE COMPLETED BY 1997.
5. COMMENTING ON REPORTS THAT WE WERE LOOKING INTO A THIRD FINANCIAL PACKAGE, THE ARTICLE SAID THAT IF THE NEW PACKAGE WAS ONLY A MODIFIED VERSION OF THE PREVIOUS TWO., WITHOUT CUTTING COSTS AND SOLVING THE CALLABLE EQUITY PROBLEM, THE CHINESE WOULD NOT ACCEPT IT. IF THE BRITISH SIDE WAS SINCERE, IT SHOULD NOT CONSIDER USING THE LAND FUND AND SHOULD TRY TO KEEP THE AMOUNT OF DEBTS UNDER DOLLARS 5 BILLION. THE COMMENTARY ALSO SAID THAT OUR STEP BY STEP APPROACH IN SETTING FUNDS FOR THE NEW AIRPORT WAS
AIMED AT CREATING A FAIT ACCOMPLI FOR THE SAR.
CHINESE SOURCES
6. WE ARE REPORTING SEPARATELY A STORY IN MING PAO TODAY (3 MAY)
WHICH QUOTED SOURCES TO REPORT REMARKS BY CHINESE OFFICIALS ON
THE PROSPECTS OF THE TALKS.
FORD
YYYY
MAIN
.HK POLICY
65
DISTRIBUTION
72
NTCD
HKD
PUSD
FED
LEGAL ADVISERS//MS BARRETT LEGAL ADVISERS//MISS BROOKS
LEGAL ADVISERS//MR GILES
NEWS D
PLANNERS
RAD
PS
PS/MR GOODLAD
SIR J COLES
MR HUM
ADDITIONAL
CAOFF//SIR R BRAITHWAITE (DIO)
CAOFF//MISS NEVILLE-JONES
CAOFF//MR SIBSON
NNUN
PAGE
PS NO 10.
2
UNCLASSIFIED