XN000022-1994-06-24 — Page 4

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FRIDAY, JUNE 24, 1994

QUESTION: CAN WE SAY THAT WE HAVE REACHED A PRELIMINARY AGREEMENT NOW ON THE AIRPORT?

GOVERNOR: I PREFER NOT TO USE WORDS LIKE AGREEMENT UNTIL EVERYTHING IS CUT AND DRY. OBVIOUSLY, IT'S IMPORTANT FOR BOTH SIDES WHO'VE BEEN WORKING VERY HARD. IT IS IMPORTANT FOR BOTH SIDES TO HAVE A PIECE OF PAPER WHICH EMBODIES PRECISELY WHAT'S BEEN AGREED THAT THEY CAN

USE, FOR EXAMPLE, THAT WE CAN USE WHEN WE ARE TALKING TO BANKERS AND TO OTHERS. [ DON'T THINK THAT IT IS IN ANYONE'S INTEREST THAT THERE SHOULD BE ANY DOUBTS. IT IS NOT IN ANYBODY'S INTEREST THAT THERE SHOULD BE ANY MATTER STILI. UNRESOLVED. SO, WE WANT TO GET EVERYTHING SORTED OUT AS CLEANLY AND CLEARLY AS POSSIBLE.

QUESTION: IS THERE ANY CONCESSION THAT THE GOVERNMENT HAS MADE IN ORDER TO REACH THE AGREEMENT? IS THERE ANY CONCESSION?

GOVERNOR :

NO,

WE'VE BEEN WORKING TOGETHER WITH CHINESE OFFICIALS ΤΟ FIND AN ACCOMMODATION WHICH IS IN THE INTERESTS OF HONG KONG. I DON'T THINK IT'S A QUESTION AT THE MOMENT OF EITHER SIDE LOOKING FOR NEW CONCESSIONS. IT'S A QUESTION OF BOTH SIDES TRYING TO EXPRESS IN AN ACCEPTABLE WAY WHAT'S BEEN AGREED IN THE TALKS.

QUESTION: HOW CONFIDENT ARE YOU THAT YOUR POLITICAL REFORM WOULD BE PASSED NEXT WEEK BY LEGCO?

PROPOSALS

GOVERNOR: I BELIEVE THAT THE LEGISLATIVE COUNCIL WILL PASS THE PROPOSALS THAT'VE BEEN PUT TO THEM AS THEY PASSED PREVIOUS PROPOSALS. WE ARE ARGUING VERY VIGOROUSLY FOR THAT. WE THINK THE PROPOSALS THAT WE'VE PUT FORWARD ARE INCOMPARABLY THE BEST ONES ON THE TABLE AND I THINK THAT THE SOONER WE CAN RESOLVE THIS MATTER THE BETTER. I 'DON'T THINK PEOPLE WANT THIS DEBATE TO DRAG ON ANY LONGER. I THINK THEY WANT TO BE GOT OUT OF THE WAY IN A WAY WHICH GIVES HONG KONG FAIR AND OPEN AND CREDIBLE ELECTION ARRANGEMENTS.

QUESTION: WOULD THE GOVERNMENT BE INTENSIFYING ITS LOBBYING ΤΟ GET THE BILI PASSED?

GOVERNOR: WE ARGUE OUR CORNER ON EVERYTHING VIGOROUSLY WHENEVER WE GOT THE OPPORTUNITY, AND WE'VE BEEN ARGUING VIGOROUSLY FOR SEVERAL WEEKS NOW.

FLEXIBILITY GOING ΤΟ

QUESTION: CONCERNING THE AIRPORT BORROWING, IS THERE ANY ON THE CHINESE SIDE THAT IT CAN EXCEED $5 BILLION WITHOUT BORROW, DOES THAT MEAN IT CAN VIOLATE THE MOU?

GOVERNOR: I DON'T THINK THAT YOU WOULD EXPECT ME TO GET INTO THE DETAILS OF WHAT'S BEING DISCUSSED BY THE EXPERTS AT THE MOMENT. WHAT WE WANT TO DO, I REPEAT, IS TO HAVE A PIECE OF PAPER, TO HAVE AN AGREEMENT WHICH EVERYBODY WILL RECOGNISE, AND EMBODIES WHAT'S BEEN ACCEPTED ON THE NEGOTIATING TABLE, AND WHICH CLEARS UP ALL THE OUTSTANDING ISSUES ON MATTERS LIKE EQUITY INJECTION AND THAT.

QUESTION: FINANCING?

WHEN CAN WE EXPECT AN OVERALL AGREEMENT FOR THE AIRPORT

/GOVERNOR: