THURSDAY, SEPTEMBER 17, 1992
NEW FINANCING PROPOSALS FOR AIRPORT AND AIRPORT RAILWAY
NEW FINANCING PROPOSALS FOR THE AIRPORT AND THE AIRPORT RAILWAY WERE PRESENTED YESTERDAY TO THE CHINESE SIDE OF THE AIRPORT COMMITTEE.
THEY HAVE BEEN DRAWN UP IN RESPONSE TO PROPOSALS PUT FORWARD BY THE CHINESE SIDE ON SEPTEMBER 9.
THIS MORNING THE PROPOSALS WERE EXPLAINED ΤΟ MEMBERS LEGCO AD HOC COMMITTEE AND THE AIRPORT CONSULTATIVE COMMITTEE.
OF THE
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"WE HAVE PUT THESE PROPOSALS FORWARD AS A CONSTRUCTIVE RESPONSE TO SUGGESTIONS MADE BY THE CHINESE SIDE ON SEPTEMBER 9, J SECRETARY FOR THE TREASURY, MR KY YEUNG, SAID TODAY (THURSDAY).
"WE HAVE ACCEPTED THE SUGGESTIONS PUT FORWARD BY THE CHINESE SIDE AND WE HOPE THAT, BY BUILDING ON THEM, WE HAVE PAVED THE WAY FOR EARLY AGREEMENT ON THE FINANCING OF THE AIRPORT AND THE AIRPORT RAILWAY.
"THE PROPOSALS WOULD ALSO PROVIDE THE AIRPORT AUTHORITY AND THE MASS TRANSIT RAILWAY CORPORATION (MTRC) WITH A PACKAGE MATCHES INCREASED FUNDS AGAINST FORECAST EXPENDITURE.
(AA)
WHICH
"THE PROPOSALS WOULD INVOLVE REINVESTING ALL THE LAND PREMIA PAYABLE BY THE MTRC AS ADDITIONAL EQUITY IN THE TWO CORPORATIONS. THIS WOULD, AMONG OTHER THINGS, ALLOW CALLABLE EQUITY TO BE MR YEUNG SAID.
THE MAIN FEATURES OF THE NEW PROPOSALS ARE:
1. THE LAND GRANTED TO THE MTRC UP TO 1997 IN THE AIRPORT RAILWAY WILL BE ADDITIONAL NORMAL LAND DISPOSAL PROGRAMME;
DROPPED,
CONNECTION WITH TO HONG KONG'S
2. LANDS PREMIA ESTIMATED AT ABOUT $40 BILLION, WHICH IS TO BE PAID BY THE MTRC BEFORE 1997, WILL BE INVESTED AS ADDITIONAL PAID-UP EQUITY IN THE AA AND MTRC. WE HAVE SUGGESTED IT MIGHT BE SPLIT AS FOLLOWS:
то $41.6
* A $25 BILLION INCREASE, FROM $16.6 BILLION
BILLION, IN GOVERNMENT PAID-UP EQUITY IN THE AA;
* A $15 BILLION INCREASE, FROM $3.7 BILLION ΤΟ $18.7
BILLION, IN GOVERNMENT PAID-UP EQUITY IN THE MTRC¦
3. CANCELLATION OF CALLABLE EQUITY TOTALLING $21 BILLION FOR
THE AA AND THE MTRC;
4. REDUCTION IN TOTAL BORROWINGS BY THE AA AND THE MTRC BY AT
LEAST $40 BILLION;
A REDUCTION OF THE ORDER OF $10 BILLION IN THE TWO CORPORATIONS' COMBINED INTEREST AND FINANCING CHARGES.
/MR YEUNG