THURSDAY, JULY 4, 1991
WE HAVE NOW GOT THIS NEW AGREEMENT IN THE FORM OF A MEMORANDUM OF UNDERSTANDING, WHICH HAS NOW BEEN INITIALLED; IT IS DUE ΤΟ BE SIGNED BY THE TWO HEADS OF GOVERNMENT, THE TWO PRIME MINISTERS, AT A TIME WHEN MR JOHN MAJOR VISITS CHINA. HE HASN'T YET GIVEN A PRECISE DATE FOR THAT VISIT BUT HE HAS SAID, OR IS SAYING ABOUT NOW IN LONDON, THAT HE HOPES TO ACCEPT PRIME MINISTER LI PENG'S INVITATION TO VISIT CHINA SOON, AND HE WILL OF COURSE BE VISITING HONG KONG AT THE SAME TIME, BUT NO DATE PRECISELY FOR THAT YET.
JL
HOUR OR SO AN HOUR OR SO - TO READ
TO READ THE I WILL BE HAPPY TO ANSWER SORRY, JUST LET ME GO ON COULD Í JUST TAKE OUT ONE
YOU'VE HAD, I HOPE, A CHANCE NOW - AN TEXT OF THIS MEMORANDUM OF UNDERSTANDING AND QUESTIONS ON THAT OR ANY OTHER MATTERS ONE MOMENT BEFORE YOU PUT YOUR HANDS UP OR TWO POINTS WHICH TO MY MIND ARE VERY IMPORTANT IN THIS. FIRST OF ALL IT IS CLEAR SUPPORT FROM CHINA FOR THE AIRPORT PROJECT. NEXT THERE IS THE CHINESE UNDERTAKING TO GIVE THE RIGHT SORT OF ASSURANCES TO INVESTORS AND POTENTIAL INVESTORS. THEN THERE IS ACCEPTANCE OF THE KEY ELEMENTS OF THIS PROJECT WHAT WE SOMETIMES CALL THE 'AIRPORT CORE PROGRAMME' OR THE 'ACP' IN THIS WAY WE ALWAYS SEEM TO USE INITIALS.
L
THEN THERE ARE WHAT I WOULD CALL SENSIBLE ARRANGEMENTS ON GOVERNMENT BORROWING, ON GOVERNMENT GUARANTEED DEBT AND ON MAJOR FRANCHISES AND MAJOR CONTRACTS WHICH SPAN 1997. THE AGREEMENT ALSO DEALS WITH CHINESE CONCERNS I WOULD SAY THEY ARE MORE WIDE THAN CHINESE CONCERNS BECAUSE THEY ARE OURS TOO ABOUT THE STATE OF FISCAL RESERVES IN 1997. WITH THE OBJECTIVE LAID DOWN OF AIMING FINANCIAL POLICIES SO THAT THERE ARE AT LEAST $25 BILLION IN FISCAL RESERVES IN 1997.
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AND AS A FOOTNOTE ON THAT POINT I SHOULD ADD OF COURSE THAT THAT WON'T BE THE ONLY RESERVE THAT HONG KONG HAS IN JULY 1997 BECAUSE THERE WILL BE THE LAND FUND, WHATEVER IT HAS REACHED BY THAT POINT IT IS ALREADY OVER HK$20 BILLION, IT WILL CLEARLY BE MUCH MORE BY 1997
AND THERE IS THE EXCHANGE FUND WHICH IS ALSO VERY HEALTHY.
AND IT IS WORTH REMEMBERING TOO, I THINK, THAT THE NEW AIRPORT PROJECT WILL GIVE THE FUTURE SAR THE TREMENDOUS ADVANTAGE OF LAND SALES IN KAI TAK, THE WEST KOWLOON RECLAMATION AND ALL THE DEVELOPMENT THAT WILL BE POSSIBLE ON NORTH LANTAU.
THEN THE AGREEMENT MAKES PROVISION FOR AN AIRPORT AUTHORITY, WHICH OF COURSE WAS IN THE PROCESS OF BEING SET UP ANYHOW, WITH ON IT SOMEBODY LOCALLY WORKING IN THE BANK OF CHINA GROUP HERE, WHO I WILL BE PREPARED TO PUT ON TO THE AIRPORT AUTHORITY. AND THERE IS A CONSULTATIVE COMMITTEE WHICH WILL ACT AS A SOUNDING-BOARD FOR WIDER PUBLIC OPINION. IT WILL BE A CHANCE FOR PEOPLE TO GIVE THEIR VIEWS ON THE PROJECT BUT IT IS NOT A DECISION TAKING BODY, AND IT IS LAID DOWN THAT IT IS NOT TO BE A DELAY-CAUSING BODY EITHER.
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