XN000022-1994-11-05 — Page 4

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SATURDAY, NOVEMBER 5, 1994

QUESTION: MR PATTEN, THIS AIRPORT AGREEMENT, WHY THERE ISN'T ANY SPECIFIC WORDINGS TO SHOW THAT CHINA ACTUALLY GUARANTEES THE FINANCING, THAT THE FINANCIAL MARKET HAS BEEN LOOKING FOR THIS, NO SPECIFIC WORDINGS AS I SAW?

GOVERNOR : I THINK THAT IT IS NOT THAT WHICH IS LACKING AT THE MOMENT. IT'S AN AGREEMENT ON THE FINANCIAL SUPPORT AGREEMENTS WHICH WE HOPE WILL COME RAPIDLY NOW THAT THE OVERALL MINUTE ON AIRPORT FINANCING HAS BEEN SIGNED. THERE'S STILL SOME OUTSTANDING BUSINESS TO BE DONE WHICH IS WHY, I THINK, SOME PEOPLE HAVE QUITE PROPERLY BEEN, WHILE ENTHUSIASTIC RESTRAINT IN THEIR RESPONSE TO THE SIGNING OF THE AGREEMENT. WE'VE GOT TO GET AGREEMENT ON THE AIRPORT CORPORATION BILL AND WE'VE GOT TO GET AGREEMENT ON THE FSAS AND I THINK WHEN WE'VE DONE THAT, WE WOULD HAVE PUT ALL THE OUTSTANDING MATTERS INTO THE DRAWERS AS IT WERE AND WHAT, I HOPE, WILL SATISFY BANKERS AS WELL. IT'S THE FSAS WHICH ARE REALLY CRUCIAL WHEN THE MTRC AND THE PROVISIONAL AIRPORT AUTHORITY GO TO THE BANKS FOR ANY BORROWING THAT THEY REQUIRE. BUT THOSE FSAS SHOULD FOLLOW AUTOMATICALLY NOW THAT THE OVERALL MINUTE HAS BEEN SIGNED. I WOULD JUST LIKE TO SAY AGAIN THAT I THINK WHAT HAPPENED YESTERDAY WAS AN IMPORTANT STEP BUT THERE ARE MORE STEPS WE HAVE TO TAKE BEFORE WE GET TO THE END OF THE ROAD. I AM PARTICULARLY PLEASED THAT I THINK THERE IS MORE RECOGNITION IN THE COMMUNITY OF THE WORK THAT HAS BEEN DONE OVER THE MONTHS AND YEARS EVEN WITHOUT AN AGREEMENT TO BUILD THE AIRPORT. THERE ARE 11,000 PEOPLE IN THE COMMUNITY WHO ARE INVOLVED IN BUILDING THE AIRPORT. THEY'VE BEEN DOING A SPECTACULAR JOB AND I HOPE THEY WILL NOW GET ALL THE SUPPORT FROM THIS AGREEMENT AND FROM FUTURE AGREEMENTS ON THE AIRPORT WHICH THEY DESERVE. ONE MORE.

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QUESTION: DO YOU CONSIDER IT FAIR FOR THE TAXPAYERS THAT BRITAIN AND CHINA AGREED HOW TO SPEND OUR MONEY WITHOUT EVER ASKING US?

GOVERNOR: I THINK THAT AS YOU KNOW, ANY EXPENDITURE, ANY INVESTMENT IN THE AIRPORT OF PUBLIC FUNDS HAS TO BE VOTED BY THE LEGISLATIVE COUNCIL WHICH REPRESENTS THE PEOPLE OF HONG KONG AND WHICH REPRESENTS THE TAXPAYERS OF HONG KONG. SO, THEY WILL HAVE VERY MUCH A SAY IN WHAT HAPPENS. I THINK THE BALANCE BETWEEN INVESTMENT OF TAXPAYERS' MONEY AND BORROWING IS A REASONABLE ONE. AT THE OUTSET, WE THOUGHT THAT IT WOULD MAKE SENSE TO BORROW MORE MONEY AND TO HAVE A LOWER EQUITY INVESTMENT AFTER YEARS OF NEGOTIATION, WE ARE NOW PROPOSING AGAINST THE BACKDROP OF HAVING MUCH LARGER RESERVES, INCREASE THE EQUITY INVESTMENT AND TO REDUCE THE BORROWING. WELL, YOU CAN ARGUE THE SITUATION BOTH WAYS. WHAT I THINK MOST PEOPLE ARE RELIEVED TO DISCOVER IS THAT AT LAST WE'VE GOT AN AGREEMENT AND WE WON'T HAVE TO HAVE MORE PRESS CONFERENCES LIKE THIS, TALKING ABOUT THE AIRPORT. THANK YOU VERY MUCH, INDEED.

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