XN000022-1989-01-26 — Page 4

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THURSDAY, JANUARY 26, 1989

THE CHIEF SECRETARY SAID A COMMITMENT TO A LONG RANGE PORT AND AIRPORT DEVELOPMENT STRATEGY MUST OBVIOUSLY BE BASED

BASED ON A CLEAR APPRECIATION OF THE BEST WAY TO FUND THE MAJOR PROJECTS INVOLVED.

"WE ARE ALREADY COMMITTED TO MAJOR EXPENDITURE ON ROADS, DRAINAGE AND THE SOCIAL SERVICES IN THE 1990'S AND IF WE ARE TO TAKE ON THIS MASSIVE PORT AND AIRPORT DEVELOPMENT WE HAVE TO BE SURE WE HAVE THE RESOURCES TO SEE IT THROUGH.

"ONE OF THE MOST INTERESTING ASPECTS OF SUCH A PROJECT AS THIS, IS THE OPPORTUNITIES IT PROVIDES FOR THE PRIVATE SECTOR TO PARTICIPATE.

"WE MUST THEREFORE BE SURE THAT WE HAVE THE RIGHT KIND OF INSTITUTIONAL FRAMEWORK TO ARRANGE FUNDING AND THE IMPLEMENTATION OF WORKS IN A TIMELY AND EFFECTIVE WAY.

"ONE POSSIBILITY

IS THE SETTING UP OF SEPARATE PORT AND

AIRPORT AUTHORITIES," SIR DAVID SAID.

"WE HAVE A MERCHANT BANK WORKING ON THIS AND THEIR ADVICE WILL BE AVAILABLE IN GOOD TIME FOR US TO MAKE THE MAJOR DECISION ON THE PROJECT, HE ADDED.

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THE CHIEF SECRETARY ALSO NOTED THAT THE PROPOSALS TO CONSTRUCT NEW AIRPORTS IN MACAU AND SHENZHEN HAD ATTRACTED CONSIDERABLE MEDIA ATTENTION AND RAISED THE INEVITABLE QUESTION OF WHETHER A NEW AIRPORT IN HONG KONG WOULD BE NEEDED.

"WE UNDERSTAND THAT THE MACAU AIRPORT WILL BE DESIGNED TO SERVE A FEW MILLION PASSENGERS AND THE SHENZHEN AIRPORT WILL MAINLY CATER FOR DOMESTIC SERVICES," HE SAID.

"WITH WELL. OVER 20 MILLION AIR PASSENGERS PROJECTED TO TRAVEL TO HONG KONG BY THE MID-90's. AND THE GROWING PROSPERITY OF THE SHENZHEN ECONOMIC ZONE AND THE PEARL RIVER DELTA REGION. THE E WILL BE MORE THAN SUFFICIENT DEMAND TO UNDERPIN THE DEVELOPMENT OF AIRPORTS IN ALL THREE PLACES, SIR DAVID SAID.

WILL

AND

IF SAL!,

"WE ANTICIPATE THAT THEY

COMPLEMENT FACR CONTRIBUTE JOINTLY TO THE PROSPERITY OF THE REGION,

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