XN000022-1992-04-16 — Page 4

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THURSDAY, APRIL 16, 1992

FORGO DIVIDENDS FROM THE MTRC BETWEEN 1997 AND 2001, AT AN ESTIMATED VALUE OF $2.8 BILLION AT 1991 PRICES, ΤΟ ASSIST THE FINANCING OF THE AIRPORT RAILWAY;

GRANT 61 HECTARES OF LAND ΤΟ THE MTRC FOR PROPERTY DEVELOPMENT AT CENTRAL, WEST KOWLOON, TAI KOK TSUI, TSING YI AND TUNG CHUNG AIRPORT RAILWAY STATIONS;

SUBSCRIBE $3 BILLION OF EQUITY TO THE MTRC IN 1993 FROM THE CAPITAL INVESTMENT FUND, AND MAKE AVAILABLE ADDITIONAL CALLABLE EQUITY OF $6.3 BILLION (BOTH FIGURES AT 1991 PRICES), TO BE DRAWN UPON ONLY IN SPECIFIC ADVERSE CIRCUMSTANCES; AND

* UNDERTAKE TO COMPLETE ALL AIRPORT CORE PROGRAMME PROJECTS REQUIRED FOR THE OPERATION OF THE AIRPORT RAILWAY, AND REIMBURSE 80 PER CENT OF REVENUE LOST TO THE MTRC IF THE GOVERNMENT IS RESPONSIBLE FOR A DELAY IN ITS COMMISSIONING.

MR LEUNG SAID THE MTRC HAD AN EXCELLENT REPUTATION AS A BORROWER, AND THE AIM OF THE SUPPORT PACKAGE WAS ΤΟ MAINTAIN THE MTRC'S CREDIT RATING TO ENABLE IT TO BORROW SUCCESSFULLY FOR THE AIRPORT RAILWAY PROJECT.

"WHAT WR ARE PROPOSING IS NOT ONLY THE MINIMUM DEGREE OF SUPPORT NECESSARY TO ENABLE THE MTRC TO FINANCE THIS PROJECT, BUT IT IS ALSO PREFERABLE TO THE ONLY OTHER ALTERNATIVES.

"IF WE FUNDED CONSTRUCTION OF THE AIRPORT RAILWAY THROUGH THE PUBLIC WORKS PROGRAMME, THIS WOULD INVOLVE A COMMITMENT ON PUBLIC FUNDS OF $22 BILLION AT 1991 PRICES, AND TAKING AWAY RESOURCES FROM OTHER KEY AREAS BETWEEN NOW AND 1997.

"ALTERNATIVELY, IF WE GUARANTEED THE MTRC'S BORROWING IN FULL, OUR GUARANTEES WOULD NEED TO REMAIN IN FORCE UNTIL ALL DEBT WAS REPAID, WHICH COULD BE WELL AFTER 1997.

"THE MTRC'S CREDIT-RATING AGENCIES HAVE INDICATED THAT THEY WOULD MAINTAIN THE CORPORATION'S CURRENT CREDIT RATING ON THE BASIS OF THE PACKAGE WE ARE PROPOSING,' "MR LEUNG SAID.

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RESULT OF PRELIMINARY ALLOCATION OF IMPORTED WORKERS AVAILABLE SOON

THE GOVERNMENT HAS COMPLETED INITIAL PROCESSING OF APPLICATIONS FROM EMPLOYERS UNDER THE 1992 GENERAL LABOUR IMPORTATION SCHEME.

A SPOKESMAN FOR THE EDUCATION AND MANPOWER BRANCH SAID (THURSDAY) THAT ALTOGETHER 8,350 COMPANIES HAD SUBMITTED TO IMPORT 92,631 FOREIGN WORKERS.

TODAY

APPLICATIONS

/"THE TOTAL