I think it is pretty obvious from what I have said that the agreement we reached on 9 June is in Hong Kong's best interests. The only alternative, quite frankly, is a judicial vacuum in 1997 until the SAR Government sets up the CFA, at a time and on a basis about which there can be no certainty. The business sector certainly welcomes the agreement and I hope very much that Members of the Legislative Council will also recognise the benefits of passing the CFA Bill and the serious consequences of not doing so. I am sure that we can count on the support of this Chamber for the agreement and the Bill.
III. The New Airport
A second guarantee of Hong Kong's successful capitalist system is, I will say, a sound and effective infrastructure. It is important for Hong Kong to maintain its status as a centre of global and regional aviation, as well as an international financial and business centre. To this end, we are pressing ahead with construction of the new airport at Chek Lap Kok, and the other nine related projects in the Airport Core Programme.
In the Airport Memorandum Of Understanding signed in September 1991 the Chinese side gave formal support to the Airport Core Programme. On 4 November 1994, an Agreed Minute was signed with the Chinese side on the overall financing arrangements for the new airport and airport railway. This provides that the Government will inject not less than $60.3 billion into the two projects, whilst allowing the Mass Transit Railway Corporation and the Airport Authority to borrow up to $23 billion by the time of project completion. With this assurance in hand, the Mass Transit Railway Corporation were able to award all major contracts for construction of the Airport Railway. On 30 June, as you know, we finally agreed with the Chinese side on the Financial Support Agreements for the two statutory Corporations. We welcome this. The Financial Support Agreements give the two organisations the assurances that they need to obtain the most competitive terms on the $23 billion that they will borrow to complete the airport railway and the first phase of the airport, and for the Government to inject additional equity where necessary and justified.
We have also been consulting the Chinese side on major franchises for the new airport. Agreement has been reached on the terms for the award of the air cargo terminal franchise. But there will be other franchises to consider and work on this will continue in the coming months but we will need to reach agreement with the Chinese expeditiously if the airport's early and effective operation is not to be adversely affected.