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FRIDAY, JANUARY 28, 1994
THE DIFFERENCE BETWEEN THE TWO WAS DISCUSSED A NUMBER OF TIMES WITH THE CHINESE SIDE IN 1991, AND IT WAS REFLECTED IN POSSIBLE FINANCING SCENARIOS PUT TO THE CHINESE SIDE, SAID SIR HAMISH.
THE HONG KONG GOVERNMENT'S FORECAST RESERVES AT THAT TIME WERE MUCH LOWER. IT WAS THEREFORE ENVISAGED THAT THE HONG KONG GOVERNMENT ITSELF MIGHT BORROW, IN ADDITION TO BORROWING BY THE PAA AND MTRC, IN ORDER TO KEEP THE RESERVES TOPPED UP IF AT SOME POINT IN TIME EQUITY PAYMENTS REDUCED THEM TOO FAR.
WHEN THE CHINESE SIDE ASKED FOR AN ASSURANCE THAT THE RESERVES WOULD BE NOT LESS THAN $25 BILLION IN 1997, BOTH SIDES REALISED THAT, WITHOUT A LIMIT ON HONG KONG GOVERNMENT BORROWING, THIS WOULD BE MEANINGLESS BECAUSE IT WOULD LEAVE THE HONG KONG ·· GOVERNMENT FREE TO BORROW ENOUGH TO MAKE THE RESERVES UP TO $25 BILLION. HENCE THE $5 BILLION LIMIT WAS INSERTED, WITH HONG KONG'S FULL AGREEMENT,
"THE $5 BILLION THEREFORE HAS NOTHING TO DO WITH THE PAA AND MTRC BORROWINGS," SAID SIR HAMISH. "IT WAS DESIGNED ΤΟ COVER THE RESULT OF HONG KONG GOVERNMENT BORROWINGS
WHICH ARE NOT NOW NECESSARY,
—
TO REACH BORROWING
"ALL THAT SAID, I WOULD EMPHASISE THAT WE ARE SEEKING. AGREEMENT WITH THE CHINESE SIDE ON FINANCING, INCLUDING ALL BY THE PAA AND MTRC, AND NOTE THAT, MEANWHILE, NOT A DOLLAR HAS BEEN BORROWED FOR THE AIRPORT PROJECTS.
"BUT LET ME MAKE ANOTHER MORE BASIC POINT
ALL THIS TO-ING AND FRO-ING THROUGH THE MEDIA DOES NOT HELP HONG KONG GET ITS NEW AIRPORT.
-
AS YOU
CAN SEE FROM
"MEANWHILE WE ARE BUILDING THE AIRPORT THE MASSIVE EARTHWORKS GOING ON AT CHEK LAP KOK.
"NOW WE NEED A MEETING OF THE AIRPORT OUTSTANDING ISSUES.
COMMITTEE ΤΟ SORT OUT
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"WE HAVE INDICATED THAT WE ARE WILLING TO SHOW FLEXIBILITY ABOUT THE CHINESE SIDE'S CONCERNS
IN
OTHER WORDS WE WOULD BE
PUTTING UP NEW PROPOSALS,"
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