XN000022-1994-03-17 — Page 3

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THURSDAY, MARCH 17, 1994

ON THE QUESTION OF THE AIRPORT, FIRST OF ALL, LET ME MAKE IT QUITE CLEAR THAT EVERY SINGLE SET OF PROPOSALS THAT WE HAVE PUT TO THE CHINESE SO FAR INCLUDING THE LATEST AND THE FOURTH FINANCING PROPOSAL IS FULLY CONSISTENT WITH THE MEMORANDUM OF UNDERSTANDING ON FINANCING OF THE AIRPORT. SO, I AM NOT QUITE SURE WHAT MR LU PING MEANS WHEN HE REFERS TO A GAP. AS YOU KNOW, THE CHINESE HAVE HAD OUR FOURTH FINANCING PROPOSAL FOR A LITTLE WHILE NOW. WE HAD A USEFUL EXPERT GROUP MEETING. SEVERAL QUESTIONS WERE PUT TO US BY THE CHINESE. WE HAVE LAST FRIDAY PROVIDED ANSWERS TO THESE QUESTIONS. WE WOULD, OF COURSE, BE VERY HAPPY TO ELABORATE ON THESE VERBALLY IF THE CHINESE WISHES. BUT, I HOPE NOW IT WILL BE POSSIBLE TO HAVE AN EARLY DATE FOR THE AIRPORT COMMITTEE TO MEET. AS FAR AS WE ARE AWARE, WE HAVE ADDRESSED ALL THE CHINESE CONCERNS WITH THE LATEST FINANCING PROPOSAL WE HAVE PUT TO THEM. BUT, OF COURSE, IF MR LU PING NOW SAYS, THEY HAVE FRESH CONCERNS, THEN IT SEEMS SENSIBLE TO ME THAT THE SOONER WE CAN SIT DOWN AND TALK ABOUT THESE AND TRY TO ADDRESS THEM THE BETTER IT IS FOR EVERYONE. WE DO NEED TO MOVE AHEAD QUICKLY ON THE AIRPORT.

THIRDLY, ON THE QUESTION OF THE ELECTION COMMITTEE. THE COMPOSITION OF THE ELECTION COMMITTEE IS NOT LAID DOWN IN THE BASIC LAW. INDEED ANNEX TWO OF THE BASIC LAW MAKES IT QUITE CLEAR THAT THE SECOND ELECTION COMMITTEE WILL NOT BE THE SAME AS THE FIRST. NOR WAS ANY UNDERSTANDING REACHED BETWEEN THE BRITISH AND HONG KONG GOVERNMENTS AND THE CHINESE GOVERNMENT ON HOW THE ELECTION COMMITTEE SHOULD BE COMPOSED. SO, IT WAS CLEAR THAT IT WAS INCUMBENT UPON THE BRITISH AND THE HONG KONG GOVERNMENTS TO PUT PROPOSALS FORWARD.

IS

IN SO FAR AS THE "SINGLE SEAT, SINGLE VOTE" SYSTEM CONCERNED, AS YOU ALL KNOW, THIS IS A SIMPLE, VERY EASY TO UNDERSTAND SYSTEM. THE COMMUNITY IS VERY FAMILIAR WITH IT SINCE WE ALREADY USED THE SYSTEM IN ELECTIONS FOR THE MUNICIPAL COUNCILS AND FOR THE MAJORITY OF THE DISTRICT BOARDS. FURTHERMORE, LEGCO HAS, ON SEVERAL OCCASIONS, EXPRESSED MAJORITY SUPPORT FOR THE CONTINUATION OF THIS SYSTEM. SO, WE VERY MUCH HOPE AND SEE NO REASON WHY THE CHINESE SHOULD SEE DIFFICULTY WITH THIS. OF COURSE, THIS SYSTEM WILL DEVELOP AS TIME PASSES. AND EVEN IF HONG KONG WERE TO BE DIVIDED INTO 60 GEOGRAPHICAL CONSTITUENCIES, EACH CONSTITUENCY WILL STILL HAVE A SIZABLE POPULATION OF 100 000 PEOPLE. SO, THIS IS NOT A SMALL CONSTITUENCY BY ANY MEANS.

QUESTION: MRS CHAN,

P

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THE AIRPORT, TWO QUICK POINTS. A CATHAY REPRESENTATIVE RECENTLY SAID THAT THE AIRPORT CONSTRUCTION HAS ALREADY SLIPPED INTO 1998. FIRST, THAT IS POINT NO 1, DO YOU AGREE OR CAN YOU CONFIRM? SECOND IS THE FINANCIAL SECRETARY HIMSELF HAS ALREADY SAID THAT THE AMOUNT OF CASH

TO BE PUT INTO THE AIRPORT EXCEEDS NORMAL COMMERCIAL PRINCIPLES. SO THE QUESTION IS WILL YOU EITHER A) SWAP THE CASH AND DO THE CHINESE WANTS OR B) WILL YOU USE THE RESOURCES ACCORDING TO PRUDENT COMMERCIAL PRINCIPLES AND LET THE POLITICAL CHIPS.... FORWARD ...?

CS: JUST REMIND ME AGAIN SINCE YOUR QUESTION WAS SO LONG. WHAT WAS THE FIRST QUESTION?

/QUESTION