XN000022-1994-10-18 — Page 4

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TUESDAY, OCTOBER 18, 1994

COMMENT ON THE RELATIONS,

QUESTION: MRS CHAN, CAN YOU RELATIONS BETWEEN HONG KONG AND TAIWAN?

CURRENT

MRS ANSON CHAN: I THINK HONG KONG'S POSITION TOWARDS TAIWAN IS VERY CLEAR. WE OF COURSE ADHERE TO THE UNITED KINGDOM POLICY WHICH IS THAT WE RECOGNIZE ONLY ONE CHINA.

OF COURSE HONG KONG WELCOMES EVERYBODY WHO WISHES ΤΟ DO BUSINESS IN HONG KONG, AND FROM THAT POINT OF VIEW, AS YOU KNOW, TAIWAN AS MANY OTHER COUNTRIES DO HAVE INVESTMENTS IN HONG KONG. AND IN PARTICULAR HONG KONG IS A VERY, VERY IMPORTANT CONDUIT FOR TAIWAN ΤΟ DO BUSINESS WITH CHINA. GIVEN THAT THEY DO NOT AT PRESENT HAVE DIRECT ECONOMIC LINKS AND TRADE TIES WITH CHINA. TIE WITH CHINA.

QUESTION: I THINK I HAVE TO ASK YOU A QUESTION IN CHINESE BECAUSE I NEED YOUR ANSWER (INAUDIBLE) REGARDING CT-9 AND THE NEW AIRPORT. THERE ARE ECONOMIC CONCERNS OF THE ISSUE IN THE UNITED STATES. SINCE BRITAIN HAVE NOT REACHED AN AGREEMENT WITH CHINA OVER THE GRANTING OF CT-9 FRANCHISE, HOW ARE YOU GOING TO SOLVE THIS PROBLEM?

MRS ANSON CHAN: HONG KONG GOVERNMENT IS QUITE CONCERNED ABOUT CT-9 AND THE NEW AIRPORT BECAUSE THERE IS TREMENDOUS PRESSURE ON THE PORT FACILITIES AND THE AIRPORT. WE NEED TO SPEED UP THE CONSTRUCTION OF CT-9 AND THE NEW AIRPORT. REGRETTABLY, ON CT-9 DEVELOPMENT, THE CHINESE SIDE RECENTLY SEEMED TO INDICATE THAT THERE WERE POLITICAL FACTORS INVOLVED IN GRANTING CT-9 FRANCHISE. WE ABSOLUTELY DO NOT WANT TO SEE POLITICAL FACTORS INVOLVED IN BUSINESS DECISIONS. REGARDING THE FRANCHISE AND OPERATIONS OF CT-9, WE HAD CAREFULLY CONSIDERED AND BASED ON ECONOMIC PRINCIPLE AS WELL AS WHO HAS THE EXPERIENCE TO OPERATE CT-9 EFFICIENTLY IN REACHING A DECISION TO GRANT THE FRANCHISE TO THE THREE COMPANIES. I VERY MUCH HOPE THAT THE CHINESE SIDE COULD AGREE THE CONSTRUCTION OF CT-9 SHORTLY. ON THE NEW AIRPORT, WE ARE STILL NEGOTIATING WITH THE CHINESE SIDE AND THERE IS GOOD PROGRESS. I HOPE TO REACH AN AGREEMENT WITH THE CHINESE SIDE IN THE VERY NEAR FUTURE. BUT EVEN BEFORE REACHING AN AGREEMENT ON THE NEW AIRPORT FINANCING, YOU ALL KNOW THAT WE HAVE MADE VERY GOOD PROGRESS ON THE CONSTRUCTION OF THE NEW AIRPORT AND WOULD CONTINUE BUILD THE NEW AIRPORT.

TO

QUESTION: I HEARD THAT THERE WOULD BE A FINANCIAL AGREEMENT ON THE NEW AIRPORT PROJECT VERY VERY SOON. BUT EVEN THOUGH THE CONSTRUCTION IS COMPLETED, THERE IS STILL A TESTING PERIOD. DO YOU THINK, ACCORDING TO THE CURRENT PROGRESS, THE NEW AIRPORT WILL BE OPENED BY THE CHANGEOVER IN 1997?

MRS ANSON CHAN: ACCORDING TO THE MEMORANDUM OF UNDERSTANDING CONCERNING THE CONSTRUCTION OF THE NEW AIRPORT IN HONG KONG AND RELATED QUESTIONS (MOU) SIGNED BETWEEN THE BRITISH AND CHINESE SIDES, THE BRITISH HONG KONG GOVERNMENT HAS THE RESPONSIBILITY TO BUILD THE NEW AIRPORT AS SOON AS POSSIBLE AND IT IS STILL OUR AIM. OF COURSE, THE PROGRESS WILL BE LIMITED BEFORE AN AGREEMENT IS REACHED. THEREFORE, WE HOPE TO REACH AN AGREEMENT WITH THE CHINESE SIDE SHORTLY SO THAT THE CONSTRUCTION CAN GO AHEAD SMOOTHLY.

QUESTION: HOW OPTIMISTIC YOU ARE ABOUT THE CHANCE IN REACHING AN AGREEMENT AND IS THERE ANY DATE SET?

MRS ANSON CHAN: OF COURSE, I HOPE AS SOON AS POSSIBLE.

/QUESTION