XN000022-1992-09-17 — Page 4

3

THURSDAY, SEPTEMBER 17, 1992

EXPLAINING THE LAND PREMIA PROPOSALS, MR YEUNG SAID: "IN RESPONDING TO THE CHINESE PROPOSAL FOR THE HONG KONG GOVERNMENT'S HALF OF THE AIRPORT RAILWAY LAND PREMIA TO BE USED ON THE AIRPORT RAILWAY, WE HAVE COME TO THE CONCLUSION THAT IT IS LOGICAL TO USE THE FULL $40 BILLION LAND PREMIA ACCRUING BY 1997, AND TO USE IT BOTH FOR THE AIRPORT RAILWAY AND FOR THE AIRPORT.

THREE IN THE JOINT

"THIS IS IN ACCORDANCE WITH ANNEXE DECLARATION WHICH PROVIDES FOR THE SAR LAND FUND ΤΟ BE USED TO FINANCE LAND DEVELOPMENT AND PUBLIC WORKS.

"WE HAVE PROPOSED TO THE CHINESE SIDE THAT THE INVOLVED IN THESE PROPOSALS SHOULD BE AGREED NOW AS PACKAGE, WITHOUT THE NEED FOR FURTHER REFERENCE ΤΟ COMMISSION EACH YEAR.

LAND GRANTS A COMPLETE THE LAND

"THEY SHOULD ALSO BE OUTSIDE THE NORMAL ANNUAL LAND DISPOSAL PROGRAMME WHICH NEEDS TO GO AHEAD AS PLANNED.

"THUS, THIS PROPOSAL WILL NOT SIGNIFICANTLY REDUCE EITHER THE GOVERNMENT'S PROJECTED FISCAL RESERVES UP TO 1997, NOR THE PROJECTED SIZE OF THE SAR LAND FUND.

MR YEUNG SAID IN ADDITION TO THE PROPOSAL RELATING TO LAND PREMIA, THE CHINESE SIDE ALSO PROPOSED THAT SEPARATE ACCOUNTS SHOULD BE DRAWN UP, SO AS ΤΟ DISTINGUISH BETWEEN THE CAPITAL COSTS AND REVENUES OF THE AIRPORT RAILWAY AND THE REST OF THE MTR SYSTEM.

"WE HAVE AGREED TO THIS PROPOSAL,

미 HE SAID.

ILLUSTRATION OF THE EFFECTS OF NEW FINANCING PROPOSALS

AIRPORT

AIRPORT RAILWAY

ORIGINAL

NEW

ORIGINAL

NEW

GOVERNMENT

$16.6BN

$41.6BN

$3.7BN

$18.7BN

EQUITY

INJECTION

CALLABLE

$8.5BN

NIL

$12.5BN

NIL

EQUITY

LAND

(UNCHANGED)

LAND PREMIA

TO GO TO

HKG AND SAR LAND FUND

ADDITIONAL LAND PREMIA INVESTED

IN MTRC AND PAA

/OTHER PROVISIONS