Serial No

Subject

2.

Background

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1

Line-to-take

Airport Talks

The existing airport is rapidly reaching its full capacity and Hong Kong definitely needs a new airport by 1997 if not earlier. It is hoped that airport talks could resume independent of talks on constitutional

reforms.

If agreement cannot be reached soon, the Government would have to proceed with other non-airport infra-structure projects so as to provide jobs for engineering consultants, construction companies and professionals. Without these contracts, there could be a drain of manpower resources away from Hong Kong which will be difficult to recall later.

We are ready to take discussions forward with the Chinese side on the financial package for the airport and airport railway as soon as possible.

Not all infra-structure projects are related to the airport project. Timing for the implementation of projects will depend on needs and funding e.g. a number of sewage treatment projects are being implemented.

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