XN000022-1994-05-21 — Page 2

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FUNDS SOUGHT FOR AIRPORT RAILWAY TUNNEL UNDER HARBOUR

THE GOVERNMENT HAS DECIDED TO SEEK APPROVAL FROM THE FINANCE COMMITTEE FOR FUNDS TOTALLING $820 MILLION (MONEY OF THE DAY) TO COVER THE COST OF CONSTRUCTING AN IMMERSED TUBE UNDER THE HARBOUR ΤΟ CARRY THE AIRPORT RAILWAY BETWEEN WEST KOWLOON AND HONG KONG CENTRAL..

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A GOVERNMENT SPOKESMAN SAID TODAY (SATURDAY): "THIS IS PART OUR STEP BY STEP APPROACH TO THE FUNDING OF AIRPORT CORE PROGRAMME PROJECTS.

"WE NEED TO TAKE THIS STEP IN ORDER TO MEET OUR COMMITMENTS UNDER THE MEMORANDUM OF UNDERSTANDING TO COMPLETE THE PROJECT TO THE MAXIMUM EXTENT POSSIBLE BY JUNE 1997, AND IN ORDER TO CARRY OUT THE PROJECTS IN A COST-EFFECTIVE MANNER.

"THE MASS TRANSIT RAILWAY CORPORATION (MTRC) CONSTRUCTION WORKS ON THE AIRPORT RAILWAY IMMERSED TUBE MONTH (JUNE) IN ORDER TO MEET OUR TARGET OF OPENING RAILWAY FROM KOWLOON TO HONG KONG CENTRAL IN APRIL 1998.

MUST START TUNNEL NEXT THE AIRPORT

THE SPOKESMAN EXPLAINED THAT THE GOVERNMENT'S FIRST PRIORITY WAS TO REACH AGREEMENT WITH THE CHINESE SIDE ON FINANCING THE AIRPORT AND AIRPORT RAILWAY.

FOLLOWING. THE MEETING OF THE AIRPORT COMMITTEE ON MAY 20, 1T WAS HOPED THAT FURTHER PROGRESS WOULD BE MADE SO THAT AN EARLY AGRREMENT WOULD BE REACHED.

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"IT IS HOWEVER NECESSARY, IN PARALLEL WITH THESE TALKS, TO MAINTAIN THE MOMENTUM ON THE ESTABLISHED STEP BY STEP BASIS, THE SPOKESMAN SAID.

"THE GOVERNMENT HAS THEREFORE DECIDED

TO GO AHEAD WITH THE FUNDING REQUEST FOR THE MTRC'S RAILWAY TUNNEL. THE CHINESE SIDE HAS BEEN INFORMED."

THE SPOKESMAN EXPLAINED THAT IT WAS NECESSARY FOR THE MTRC ΤΟ START THE RAILWAY TUNNEL CONTRACT NEXT MONTH So THAT CONSTRUCTION COULD PROCEED IN PARALLEL WITH WORK ON THE WESTERN HARBOUR CROSSING

(WHO) ROAD TUNNEL.

THIS WOULD ALLOW BOTH IMMERESD TUBES TO BE LAID ON THE BED OF THE HARBOUR AT THE SAME TIME, USING THE SAME TEMPORARY DIVERSIONS OF THE SHIPPING FAIRWAY.

THE MTRC WOULD SHORTLY BE SELECTING A SUCCESSFUL TENDERER FOR THE WORKS, AND WOULD THEREFORE IN A POSITION TO AWARD THE CONSTRUCTION CONTRACT AS SOON AS FUNDS WERE APPROVED.

IF THE RAILWAY TUNNEL CONTRACT DID NOT START NEXT MONTH, THE WHO TUNNEL, WOULD HAVE TO PROCEED ON ITS OWN IN ORDER TO COMPLY WITH THE FRANCHISEE'S CONSTRUCTION PROGRAMME AND OPENING DATE.

FOR MARINE SAFETY REASONS, THE RAILWAY TUNNEL WOULD THEN HAVE TO WAIT TILL THE WHO WORKS WERE COMPLETED BECAUSE IT WOULD NOT BE POSSIBLE TO OPERATE TWO FAIRWAY DIVERSIONS AT THE SAME TIME.

/THAT WOULD