XN000022-1991-04-09 — Page 8

TUESDAY, APRIL 9, 1991

THE

HONG

AIRPORT IS REGION? (2)

BOWRING (FAR EASTERN ECONOMIC REVIEW): YOU MENTION QUESTION OF ECONOMIC FACTS. IS IT NOT AN ECONOMIC FACT THAT THE KONG GOVERNMENT AND THE BRITISH GOVERNMENT BELIEVE THIS NECESSARY FOR THE CONTINUED ROLE OF HONG KONG IN THIS

(3) THAT THERE ARE THAT THIS AIRPORT PROJECT IS COMMERCIALLY VIABLE?

DOLLARS WORTH OF SOMETHING IN THE REGION OF 75 BILLION HONG KONG

IF AND (D) THAT

THE RESERVES

IN THE EXCHANGE FUND UNUSED? SITTING

IS UNITED KINGDOM GOVERNMENT TRULY BELIEVES THAT THE AIRPORT PROJECT

LEND THE MONEY NECESSARY

COMMERCIALLY VIABLE, WHY DOES IT NOT ITSELF, GUARANTEED AGAINST THE PRE-RESERVES OF THE EXCHANGE FUND?

-

-

NOT

J

MR HURD: BECAUSE IT IS NOT THE POLICY OF THE BRITISH GOVERNMENT

IT HAS NOT BEEN AND IT WILL TO LEND MONEY TO FINANCE HONG KONG

IF YOU CAN PUT IT THIS WAY BE. THIS IS ONE OF THE COMMON POINTS

WE DON'T, BETWEEN

CHINA. BRITAIN AND FINANCIALLY AND PEKING HAS NO INTENTION OF FINANCIALLY.

+

PHILIP

BOWRING:

■

A LOAN

TO' A

NOW, SUPPORT HONG KONG

THE SUPPORTING

S.A.R.

SOMEWHAT OF THAT;

FROM

GOVERNMENT IS A DIFFERENT ANIMAL FROM A GRANT, NO DOUBT YOU ARE WELL AWARE THE ECOD FOR EXAMPLE IS IN A POSITION TO GUARANTEE CERTAIN LOANS

THE AIRPORT SUPPORTING ANY CONTRIBUTIONS THAT BRITAIN MIGHT MAKE TO PROJECT, LIKEWISE – IF I MAY REFER YOU BACK TO MY QUESTION RELATING TO FINANCIAL THE FREE RESERVES OF THE EXCHANGE FUND HERE ARE ALL THESE RESOURCES, CAN THEY NOT BE PUT TO SEEING THAT WHAT IS SUPPOSED TO BE A CAN BE COMMERCIALLY VIABLE PROJECT WHICH IS NECESSARY FOR HONG KONG

UNDER NORMAL RULES OF CARRIED OUT BY INTERNATIONAL INTERNATIONAL CONTRACTING.

CONTRACTORS

MR HURD: SUPPOSING SOME FORM OF SUPPORT FROM BRITAIN WHETHER IN THE FORM OF A SOFT LOAN OR...

PHILIP

CLEAR.

BOWRING:

.BRITISH

GOVERNMENT LOAN I

IT MADE

VERY

SAY.

YOU

OF COURSE ECGD CIRCUMSTANCES

MR HURD: I AM TRYING TO MAKE SENSE OF WHAT YOU DID ARE SAYING YOU ARE NOT TALKING ABOUT A GRANT AND SO YOU ARE PRESUMABLY TALKING ABOUT A LOAN WHICH IS GUARANTEED IN SOME WAY.

IN CERTAIN COVER IS ECGD

AND IT DOES COVER COVER PROJECTS CARRIED OUT BY BRITISH FIRMS. BUT I REPEAT MY WHICH YOUR

THAT IT HAS NOT BEEN AND IT QUESTION ASKS; POLICY OF THE BRITISH GOVERNMENT TO GIVE BRITISH FINANCIAL SUPPORT IT WOULD BE THOUGHT VERY ODD IF THIS OR TO ANY HONG KONG PROJECT. DID.

MAIN POINTS IS NOT THE

ΤΟ

WE

PHILIP BOWRING: CAN YOU

+

TO THE RESERVES QUESTION?

MR HURD: THE USE WHICH THE HONG KONG GOVERNMENT MAKES RESERVES IS A MATTER FOR THE HONG KONG GOVERNMENT.

OF

ITS

PHILIP BOWRING : I AM SORRY BUT THE EXCHANGE FUND RESERVES IN FACT ENTIRELY IN YOUR CONTROL.

ARE

MR HURD: THE USE WHICH THE HONG KONG GOVERNMENT MAKES ALL THE RESERVES IS A MATTER FOR THE HONG KONG GOVERNMENT. WHICH I HAVE SEEN FOR THE POSSIBLE VARIATIONS OF THE AIRPORT INVOLVE ABOUT 25 PER CENT, ABOUT 1/4 OF PRIVATE INVESTMENT AND WHY I POCUSED ON THAT POINT IN MY EARLIER REPLY.

OF ITS

FIGURES PROJECT THAT'S

/S.Y. YUE