XN000022-1992-09-17 — Page 3

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THURSDAY, SEPTEMBER 17, 1992

SIDE OF

MR YEUNG SAID INFORMATION HANDED OVER TO THE CHINESE THE AIRPORT COMMITTEE ILLUSTRATED IN MORE DETAIL THE THE NEW PROPOSALS WOULD HAVE ON THE ORIGINAL FINANCIAL PACKAGES.

KIND OF EFFECT

THIS INFORMATION SHOWED ᎢᎻᎪᎢ .

IN PREPARING FIGURES ILLUSTRATE THE EFFECT OF THE NEW PROPOSALS, THE CASH FLOWS ADJUSTED:

TO

HAVE

BEEN

AIRPORT

A) BY INCREASING THE LEVEL OF THE AA'S PAID-UP EQUITY BY $25

BILLION;

B) BY REQUIRING PAYMENT TO GOVERNMENT OF

AIR TRAFFIC CHARGES AND METEOROLOGICAL CHARGES FROM THE OPENING AIRPORT, RATHER THAN BEING DEFERRED TILL 2005;

CONTROL OF THE

ON THIS BASIS:

A) THE MAXIMUM DEBT OF THE AIRPORT AUTHORITY WOULD BE

TO $5.9 BILLION FROM $37 BILLION;

B) ALL DEBT COULD BE REPAID BY 1999;

REDUCED

C) SAVINGS IN THE TOTAL PROJECT COST COULD BE POSSIBLE

BECAUSE

OF THE REDUCTION IN INTEREST AND FINANCING CHARGES. THE ORDER OF SAVINGS WOULD BE $5.5 BILLION;

D) DIVIDENDS COULD BE PAID то THE SPECIAL ADMINISTRATIVE

REGION GOVERNMENT (SARG) FROM 2000 INSTEAD OF 2005.

THE AIRPORT RAILWAY

THE CASH FLOWS HAVE BEEN ADJUSTED BY INCREASING THE LEVEL OF PAID-UP EQUITY BY $15 BILLION.

ON THAT BASIS:

WOULD BE REDUCED ΤΟ $29.9 THE BORROWINGS REQUIRED TO AIRPORT RAILWAY WOULD BE

A) THE MAXIMUM DEBT OF THE MTRC

BILLION FROM $47.9 BILLION. FINANCE THE CONSTRUCTION OF THE REDUCED FROM $36 BILLION TO $17 BILLION;

B) ALL DEBT RELATED TO THE AIRPORT RAILWAY COULD BE REPAID BY

2006;

THE

1997 THE AIRPORT

C) DEFERRAL OF PAYMENT OF DIVIDENDS TO THE SARG WOULD NO

LONGER BE NEEDED. DIVIDENDS WOULD BE PAID FROM SAME TIME AS IF THE MTRC HAD NOT UNDERTAKEN RAILWAY;

D) SAVINGS IN TOTAL PROJECT COST WOULD BE POSSIBLE

THE REDUCTION IN INTEREST AND FINANCING CHARGES. OF SAVINGS WOULD BE ABOUT $4.3 BILLION,

BECAUSE

THE

OF ORDER

/EXPLAINING THE