XN000022-1994-01-26 — Page 2

WEDNESDAY, JANUARY 26, 1994

STATEMENT ON AIRPORT FINANCING

* * * * *

THE FOLLOWING STATEMENT WAS ISSUED TODAY (WEDNESDAY) BY A HONG KONG GOVERNMENT SPOKESMAN:

**WE REGRET THE ATTITUDE TAKEN BY THE CHINESE SIDE IN THE STATEMENT ISSUED LAST NIGHT BY THE HONG KONG AND MACAO AFFAIRS OFFICE (HKMAO).

"WE HAVE ALWAYS TAKEN THE VIEW THAT IT IS MUCH MORE

CONSTRUCTIVE TO DISCUSS THESE ISSUES IN FORMAL MEETINGS OF THE AIRPORT COMMITTEE, RATHER THAN THROUGH PRESS STATEMENTS.

"WE HAVE FORMALLY REQUESTED A MEETING OF THE AIRPORT COMMITTEE

TO ORDER

TRY TO REACH AGREEMENT ON

ISSUES THE OUTSTANDING CONCERNING FINANCING FOR THE AIRPORT AND AIRPORT RAILWAY.

IN

"WE HAVE INDICATED OUR WILLINGNESS TO SHOW FLEXIBILITY ABOUT. CHINA'S CONCERNS AND ARE NOW AWAITING A REPLY.

"A MEETING OF THE AIRPORT COMMITTEE IS URGENTLY ENABLE US REACH

THESE AGREEMENT, SO THAT PROCEED WITHOUT DELAY.

NEEDED

TO

IMPORTANT PROJECTS

CAN

DOING

"THE STATEMENT ISSUED BY THE HKMAO WILL NOT DO ANYTHING TO ASSIST IN THE CONSTRUCTION OF THESE PROJECTS. MEANWHILE WE ARE OUR BEST TO MAINTAIN THE MOMENTUM.

ON

THE

"WE HAVE $46 BILLION CONSTRUCTION CONTRACTS UNDER WAY AIRPORT CORE PROGRAMME, ALL LET WITHIN BUDGET AND PROCEEDING SMOOTHLY.

"WE

AIRPORT HAVE BUILT OVER 35% OF THE PLATFORM FOR THE

220 AND ARE PROCEEDING WITH DESIGN AND OTHER WORK. WE HAVE RECLAIMED

WE HAVE STARTED HECTARES OF LAND FOR THE WEST KOWLOON RECLAMATION.

WITH THE AGREED FRANCHISE CROSSING, UNDER A

MA SUSPENSION AND WE HAVE COMPLETED 37% OF THE TSING SIDE,

SITE

WESTERN HARBOUR

THE CHINESE BRIDGE.

"THESE ARE REAL ACHIEVEMENTS. THEY DEMONSTRATE THAT WE HAVE A WE WANT TO KEEP THOSE HIGHLY COST-EFFECTIVE, WELL-MANAGED PROGRAMME. ACHIEVEMENTS GOING.

REDUCTION BEEN

"ON COSTS, WE HAVE RECENTLY ANNOUNCED A $5.5 BILLION IN THE OVERALL $163.7 BILLION ACP ESTIMATE. THIS REDUCTION HAS MADE POSSIBLE BY KEEN TENDERING AND RIGOROUS BUDGETARY CONTROL.

"WE HAVE MOVED BEYOND THE STAGE WHERE IT IS RELEVANT TO TALK IN TERMS OF 'REDUCING COSTS'. THE ACHIEVEMENTS SPEAK FOR THEMSELVES.

LET US BE

"THE QUESTION OF DEBT HAS BEEN RAISED BY THE HKMAO. CLEAR THAT THE MOU IS REFERRING TO BORROWING BY THE GOVERNMENT JUNE 1997, WHICH IT SAYS SHOULD NOT EXCEED $5 BILLION.

BEYOND

/"HOWEVER THE