XN000022-1994-02-01 — Page 3

TUESDAY, FEBRUARY 1, 1994

GOVERNOR SPEAKS TO REPORTERS AFTER EXECUTIVE COUNCIL MEETING

QUESTION: WHAT IS THE AIRPORT PACKAGE THAT YOU ARE PROPOSING?

GOVERNOR: WE HAD A GOOD DISCUSSION OF THE FINANCING OF THE AIRPORT AS WELL, OF COURSE, AS NOTING THE PROGRESS THAT'S BEEN MADE VERY STEADILY IN BUILDING THE AIRPORT WHICH IS RISING OUT OF THE SEA IN A VERY SPECTACULAR WAY. WE'VE AGREED ON NEW FINANCING PROPOSALS. IT'S

THE FOURTH SET WE'VE PUT FORWARD WHICH WE BELIEVE, ADDRESS ALL THE EXPRESSED CHINESE CONCERNS. WE'VE BEEN ABLE TO DO THAT BECAUSE OF THE VERY HEALTHY STATE OF HONG KONG'S RESERVE WHICH THE FINANCIAL SECRETARY WILL BE SAYING MORE ABOUT WHEN IT COMES ΤΟ HIS BUDGET STATEMENT IN MARCH. WE'LL BE PASSING THE PROPOSALS TO THE CHINESE SIDE AS SOON AS POSSIBLE AND WE WOULD VERY MUCH LIKE ΤΟ SEE AN EARLY MEETING OF THE AIRPORT COMMITTEE SO THAT WE CAN RESOLVE THESE ISSUES FOR ONCE AND FOR ALL. AS I SAY, WE ARE PASSING THE PROPOSALS TO THE CHINESE SIDE, OBVIOUSLY WE WOULDN'T WANT TO GO INTO DETAIL ABOUT THEM DESPITE SOME OF THE SPECULATION THAT THERE HAS BEEN IN THE NEWSPAPERS AND ELSEWHERE IN THE LAST FEW DAYS ON THE PRECISE DETAILS. WE WOULDN'T WANT TO GO INTO THOSE DETAILS UNTIL THE CHINESE SIDE HAVE OPPORTUNITY OF STUDYING THEM. BUT I THINK THEY ARE SENSIBLE AND I VERY MUCH HOPE THAT THE CHINESE SIDE WOULD TAKE THAT WELL.

QUESTION: WILL MR GORDON SIU HELP TO BRING ALONG THE MESSAGE NEW PROPOSALS TO THE CHINESE SIDE?

HAD THE PROPOSALS VIEW AS

OF THE

GOVERNOR: NO, MR GORDON STU WON'T BE DOING THAT.

QUESTION: DOES THE PROPOSAL MEAN AN INCREASE IN INJECTION OF EQUITY?

GOVERNOR: I LEAVE YOU TO SPECULATE GIVEN WHAT THE EXPRESSED CHINESE CONCERNS HAVE BEEN. BUT IN EVERY STAGE, WE'VE TRIED TO ADDRESS THOSE CONCERNS. THIS TIME, I BELIEVE WE SHOULD HAVE DONE SO COMPREHENSIVELY.

QUESTION: PROPOSAL?

COULD YOU COMMENT ON AN EXPERT'S

CASH-INJECTION-ORIENTED

GOVERNOR : I AM NOT SURE WHICH ONE YOU MEAN. DO YOU MEAN THE ONE ERIC LI HAS BEEN SUGGESTING?

QUESTION: I MEAN THAT THE RATIO BETWEEN CASH INJECTION AND DEBT....?

GOVERNOR : I DON'T WANT TO TALK IN DETAIL ABOUT CASH INJECTIONS. I HINK YOU HAVE A PRETTY CLEAR IDEA OF WHAT THE CHINESE SIDE HAVE BEEN CALLING FOR AND AS I'VE SAID A MOMENT OR TWO AGO, IT IS OUR ESTIMATE THAT THE NEW PROPOSALS THAT WE DISCUSSED IN THE EXECUTIVE COUNCIL THIS MORNING AND THAT WE'VE AGREED TO MEET ALL THE CHINESE CONCERNS. ONE MORE QUESTION.

QUESTION: MANY PEOPLE URGE THE GOVERNMENT NOT TO SHELVE RAILWAY SO AS TO MAKE COMPROMISE WITH CHINA. SO, WILL THE PROCEED ON THE AIRPORT RAILWAY ON ITS ORIGINAL SCHEDULE?

THE AIRPORT GOVERNMENT

/GOVERNOR