XN000022-1994-01-21 — Page 4

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FRIDAY, JANUARY 21, 1994

"

OUR

LAST

EXPERT-

IN

PROVED

'DURING THE MANY

ELAPSED MONTHS THAT HAVE

SINCE PROPOSAL AT THE END OF JUNE LAST YEAR, WE HAVE HELD INFORMAL LEVEL DISCUSSION WITH THE CHINESE SIDE, AND AN AIRPORT COMMITTEE AUGUST. HOWEVER, A FULL AGREEMENT STILL ELUDES US. IT HAS NOT POSSIBLE IN RECENT MONTHS TO HOLD FORMAL TALKS ON THE LAND ASPECTS.

ΤΟ ORDER

TAKE STOCK OF THE SITUATION, AND ΤΟ SEE WHAT FURTHER PROGRESS COULD BE MADE, WE FORMALLY ASKED THE CHINESE SIDE MONDAY TO AGREE TO ANOTHER FULL MEETING OF THE AIRPORT COMMITTEE THE NEAR FUTURE.'

**IN

ON

IN

ALSO

IN ANSWER TO A QUESTION ABOUT WHETHER THE GOVERNMENT HAD PUT UP A FURTHER $5 BILLION, SIR HAMISH ALSO SAID: "SINCE YOU ASK THAT

I CAN CONFIRM THAT THE ADDITIONAL AMOUNT WAS QUESTION,

$5 BILLION THE FROM THE RESERVES, SO THAT IS $20.3 BILLION PLUS $5 BILLION FROM RESERVES AND THEN THE $20 BILLION FROM OUR SHARE OF THE LAND PREMIUM OF THE AIRPORT RAILWAY. THAT'S OUR LATEST PROPOSAL.'

ASKED ABOUT SUGGESTIONS BY THE CHINESE SIDE THAT THE GOVERNMENT HAD BREACHED THE MEMORANDUM OF UNDERSTANDING (MOU), SIR HAMISH SAID: "WE HAVE OPERATED CONSISTENTLY WITHIN THE MOU. THE FINANCIAL PROPOSALS WE HAVE

TO MADE ARE CONSISTENT WITH THE MOU. OUR REPEATED ATTEMPTS DISCUSS ISSUES WITH THE CHINESE SIDE ARE CONSISTENT WITH THE MOU, AND CORE SO ARE OUR CONTINUING EFFORTS TO COMPLETE AS MUCH OF THE AIRPORT PROGRAMME AS POSSIBLE BY MID-1997."

A GOVERNMENT SPOKESMAN SAID: "TO SUMMARISE WHAT THE FINANCIAL SECRETARY SAID IN ANSWERS TO QUESTIONS FROM FINANCE COMMITTEE MEMBERS TODAY, THE FINANCING PROPOSALS MADE BY THE HONG KONG GOVERNMENT CONSIST OF:

THE

GOVERNMENT'S ORIGINAL FINANCING PLAN, IN EARLY 1992, INVOLVED THE INJECTION OF $3.7 BILLION (MONEY OF THE DAY) PAID-UP EQUITY INTO THE MTRC AND $16.6 BILLION INTO THE PAA MAKING A OF $20.3 BILLION - PLUS A TOTAL OF $21 BILLION CALLABLE EQUITY.

TOTAL

* IN SEPTEMBER 1992, THE HONG KONG GOVERNMENT RESPONDED TO IDEA FROM THE CHINESE SIDE AND PROPOSED THAT ALL THE $40 BILLION LAND PREMIA TO BE PAID BY THE MTRC BEFORE COMPLETION OF THE SHOULD BE USED AS ADDITIONAL PAID-UP EQUITY IN THE TWO CORPORATIONS.

AN

OF

RAILWAY

AND

* THAT WOULD INVOLVE USING BOTH THE HONG KONG GOVERNMENT'S THE SPECIAL ADMINISTRATIVE REGION GOVERNMENT (SARG) LAND FUND'S SHARES THAT OF THE PREMIA IN EQUAL $20 BILLION SHARES - ON THE UNDERSTANDING

NORMAL LAND THE LAND INVOLVED WOULD BE ADDITIONAL TO HONG KONG'S DISPOSAL PROGRAMME. THE TOTAL PAID-UP EQUITY IN THE TWO CORPORATIONS WOULD THEN BE $60.3 BILLION. THE PREVIOUS $21 BILLION CALLABLE EQUITY PROPOSALS WERE CANCELLED.

BILLION

$20

BEING

* LAST SUMMER THE GOVERNMENT OFFERED TO PUT IN ITS $20

THE

SARG LAND SHARE OF

FUND'S LAND SALE PREMIA, WITHOUT THE BEING USED. THAT REMAINED CONDITIONAL ON THIS BILLION SHARE ADDITIONAL ΤΟ HONG KONG'S NORMAL LAND DISPOSAL PROGRAMME. IT OFFERED A FURTHER $5 BILLION, BRINGING THE TOTAL PAID-UP EQUITY IN THE TWO CORPORATIONS TO $45.3 BILLION.

ALSO

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