XN000022-1992-05-04 — Page 8

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MONDAY, MAY 4, 1992

MRS CHAN WAS SPEAKING AT A SEMINAR ON THE PORT AND AIRPORT DEVELOPMENT STRATEGY, WITH EMPHASIS ON THE AIRPORT CORE PROGRAMME (ACP) INTO WHICH THE STRATEGY HAS EVOLVED, FOR DELEGATES ATTENDING THE ASIAN DEVELOPMENT BANK'S ANNUAL MEETING.

KAI

EXPLAINING WHY HONG KONG HAS EMBARKED ON ITS PROGRAMME TO BUILD A NEW INTERNATIONAL AIRPORT AT CHEK LAP KOK, SHE POINTED OUT THAT TAK AIRPORT, AMONG THE WORLD'S BUSIEST WITH OVER 19 MILLION PASSENGERS LAST YEAR, WOULD ALREADY HAVE REACHED CAPACITY BUT FOR EXPANSION WORK NOW IN PROGRESS.

"WELL BEFORE WE CAN OPEN THE REPLACEMENT AIRPORT, KAI TAK WILL BE UNABLE TO COPE WITH FORECAST TRAFFIC. GROWTH WILL BECOME SEVERELY CONSTRAINED AS IT BECOMES IMPOSSIBLE FOR AIRLINES TO SECURE COMMERCIALLY ACCEPTABLE LANDING AND DEPARTURE SLOTS,' SHE SAID.

UNDER

MRS CHAN SAID THE NEW AIRPORT AT SHENZHEN AND THE MACAU AIRPORT CONTRUCTION WERE ON A MUCH SMALLER SCALE AND DESIGNED то MEET SPECIFIC REGIONAL DEMANDS.

"IN THIS WAY, THEY PERFORM A ROLE COMPLEMENTARY TO THAT OF HONG KONG'S AIRPORT.

"

WHILE THEY MIGHT PLAY A MINOR PART IN RELIEVING THE IMMEDIATE PROBLEMS RESULTING FROM THE CONGESTION AT KAI TAK, THEY ARE NOT IN A POSITION TO RELIEVE THE HUGE VOLUME OF EVER INCREASING TRAFFIC OPERATING INTO KAI TAK UNDER THE TERMS OF AIR SERVICE AGREEMENTS SPECIFIC TO THE TERRITORY OF HONG KONG. SUCH TRAFFIC SIMPLY CANNOT BE DIVERTED TO AIRPORTS LOCATED IN OTHER TERRITORIES, SHE SAID.

"I

MRS CHAN POINTED OUT THAT AN EFFICIENT TRANSPORT NETWORK WAS CRUCIAL FOR THE SUCCESS OF THE NEW AIRPORT, AND THIS WOULD BE FORMED BY A SIX-LANE ROAD CORRIDOR AND A HIGH-SPEED RAILWAY.

ON FINANCING, MRS CHAN SAID THE ACP PRESENTED A MAJOR FINANCING CHALLENGE FOR THE GOVERNMENT, FOR PRIVATE INVESTORS AND FOR THE GOVERNMENT'S TWO WHOLLY-OWNED CORPORATIONS, THE MASS TRANSIT RAILWAY CORPORATION (MTRC) AND THE PROVISIONAL AIRPORT AUTHORITY.

"WE

HAVE AN EXCELLENT RECORD OF CO-OPERATING WITH THE PRIVATE SECTOR IN DEVELOPING OUR INFRASTRUCTURE AND WE SEE GREAT SCOPE FOR CONTINUING THIS SUCCESS STORY IN THE ACP," SHE SAID.

THE GOVERNMENT WOULD ENSURE THE TWO CORPORATIONS WERE SUFFICIENTLY CAPITALISED TO UNDERTAKE THEIR WORK OF BUILDING THE NEW AIRPORT AND THE AIRPORT RAILWAY.

FINANCING FOR THE AIRPORT PLAN HAD BEEN DEVELOPED IN THE LIGHT OF THE PRUDENT FISCAL POLICIES WHICH HAD BEEN CONSISTENTLY ADOPTED BY THE GOVERNMENT: TO KEEP THE GROWTH RATE OF PUBLIC EXPENDITURE WITHIN THE GROWTH RATE OF THE ECONOMY AS REFLECTED BY THE FORECAST TREND GROWTH RATE OF GDP.

**WE CANNOT, OF COURSE. BE ABSOLUTELY RIGID ABOUT THIS. FROM TIME TO TIME, WE MUST ACCOMMODATE LARGE CAPITAL EXPENDITURE ITEMS SUCH AS THE ACP.

/"WE HAVE