XN000022-1992-06-10 — Page 2

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CS TO MEET NEW GOVERNOR

WEDNESDAY, JUNE 10, 1992

THE CHIEF SECRETARY, SIR DAVID FORD, WILL PAY A DUTY VISIT TO THE UK FROM JUNE 12 TO 21.

DURING HIS VISIT, THE CHIEF SECRETARY WILL GOVERNOR-DESIGNATE, MR CHRIS PATTEN, AND BRIEF HIM ON INTEREST IN THE TERRITORY.

MEET THE MATTERS OF

HE WILL CALL ON THE FOREIGN AND COMMONWEALTH AFFAIRS OFFICE AND DISCUSS HONG KONG ISSUES WITH OFFICIALS RESPONSIBLE FOR HK AFFAIRS. HE WILL ALSO VISIT THE HK GOVERNMENT OFFICE IN LONDON.

SIR DAVID WILL RETURN TO HK ON JUNE 22.

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T

PAA CASH FLOWS AND BUSINESS PLAN

* * * * *

THE NEW AIRPORT AT CHEK LAP KOK WILL OPERATE AS A "VERY ROBUST BUSINESS" WITH REVENUES WHICH WILL MORE THAN COVER ITS OPERATING AND FINANCING COSTS ON AN ANNUAL BASIS FROM ITS FIRST YEAR.

THIS WAS STATED TODAY BY THE GOVERNMENT AND THE PROVISIONAL AIRPORT AUTHORITY WHEN PAPERS COVERING THE AUTHORITY'S BUSINESS PLAN AND PROJECTED CASH FLOWS WERE TABLED AND DISCUSSED AT A MEETING OF THE LEGISLATIVE COUNCIL AD HOC GROUP.

THE PAPERS SHOW THE AUTHORITY'S REVENUES WILL RISE STEADILY AND REACH $22.70 BILLION A YEAR IN MONEY OF THE DAY) IN 2010. THIS IS FORECAST TO PROVIDE A POSITIVE CASH FLOW

OR OPERATING PROFIT OF $10.39 BILLION AFTER RECURRENT AND CAPITAL EXPENDITURE AND TAX PAYMENTS.

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"THIS SHOWS THAT THE AIRPORT PROJECT IS A VERY ATTRACTIVE INVESTMENT FOR THE GOVERNMENT AND FOR THE PEOPLE OF HONG KONG, A GOVERNMENT SPOKESMAN SAID TODAY.

"CLEARLY THE AIRPORT WILL BE EXTREMELY STRONG ECONOMICALLY, ONCE IT STARTS TO OPERATE IN 1997, AND AFTER THAT IT WILL CERTAINLY NOT NEED GOVERNMENT SUPPORT THROUGH CALLABLE EQUITY"

THE SPOKESMAN EXPLAINED THAT THE GOVERNMENT TRANSPARENT AS POSSIBLE WITH THE FINANCIAL DETAILS 80 THAT THE PUBLIC WAS WELL INFORMED ABOUT THE PLANS.

WAS BEING AS то ENSURE

AS

EXTENSIVE FINANCIAL INFORMATION IS BEING RELEASED то LEGISLATIVE COUNCILLORS AND THE PUBLIC, AS WELL AS ΤΟ MEMBERS OF AIRPORT CONSULTATIVE COMMITTEE.

THE FINANCIAL PROJECTIONS SHOW THAT ANNUAL REVENUES WILL PASS $17.32 BILLION IN 2005. THIS WILL BE SUFFICIENT то COVER ALL THE AUTHORITY'S COSTS AND ENABLE INITIAL PROJECT DEBT OF $37 BILLION ΤΟ BE FULLY REPAID BY THAT YEAR.

/DIVIDENDS TOTALLING