XN000022-1994-11-18 — Page 4

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FRIDAY, NOVEMBER 18, 1994

QUESTION:

WHEN ARE YOU EXPECTING TO RESUME TALKS ON FINANCING SUPPORT AGREEMENTS?

S FOR TSY:

THE

WE'VE ALREADY STARTED. WE HAD TWO MEETINGS ALREADY AND THE EXPERTS ARE STILL IN CONTACT, SO THE PROCESS IS CONTINUING THEY'RE AT RAPID PACE.

AND

QUESTION:

IT WAS SAID IN LEGCO NOT LONG AGO THAT THERE WASN'T CERTAINTY THAT THE GOVERNOR WILL BE ABLE TO TAKE THE RAILWAY TO LAP KOK OR FLY OUT FROM CHEK LAP KOK. IS THAT STILL?

A CHEK

FS:

I DON'T THINK THAT THING IS UPPER MOST IN OUR MIND. WHAT'S UPPER MOST IN OUR MIND IS GETTING ON, WE'VE JUST DEALT WITH THE RAILWAY, IS GETTING ON WITH IT AND GETTING IT STARTED, GETTING IT RUNNING AS SOON AS POSSIBLE.

QUESTION;

FS:

CAN YOU SAY HOW MANY MONTHS HAVE BEEN UP TO NOW?

I DON'T HAVE THAT FIGURE IN MY HEAD NOW.

QUESTION:

AND

THIS BORROWING, DO YOU FORESEE ANY PROBLEMS BEARING IN MIND THAT THE FINANCIAL WORLD IS QUITE TAKEN IT ABACK BY THE LATEST INTEREST RATE HIKE ?

FS:

A

I DON'T THINK THEY'RE TAKEN ABACK. I THINK THAT IN WAY THEY ARE RATHER RELIEVED TO HAVE THE UNCERTAINTY REMOVED, OR AT LEAST SOME OF THE UNCERTAINTY REMOVED. THERE IS NOT SURPRISE AT THE INTEREST RATE GOING UP, THEY'VE BEEN FORECAST FOR MONTHS. NO, IT IS NOT THAT WE ARE WORRIED. IT'S JUST THAT WE ARE PRUDENT. UNTIL WE KNOW THAT THE BORROWING PROGRAMME IS SECURED, AND THE FSA IS SECURED, IT MAKES SENSE TO DEFER A RE-APPRAISAL OF THE TIME SCALE. THAT'S ALL.

QUESTION:

FS:

BUT YOU DON'T SEE ANY PROBLEMS IN BORROWING?

I DON'T EXPECT ANY PROBLEMS WHATSOEVER, BEARING IN MIND BOTH THE MTRC AND THE PAA WILL BE BORROWING FAR LESS THAN WE HAD ORIGINALLY THOUGHT WAS ACHIEVABLE. IT'S NOT A SMALL BORROWING PROGRAMME, BUT IT'S CERTAINLY QUITE MODEST COMPARED TO WITH WHAT WE HAD ORIGINALLY PLANNED. SO I DON'T THINK THAT. WE WILL HAVE ANY PROBLEMS AT ALL.

QUESTION (IN CANTONESE): NEXT WEEK ON THE TWO FSAS?

MR TSANG, WILL THERE BE EXPERT MEETING

ARE

S FOR TSY (IN CANTONESE):

THE EXPERTS HAVE MET TWICE. WE CONTINUING OUR LIAISONS ON THAT. I PERSONALLY BELIEVE THAT THESE

LIAISONS WILL HAPPEN CONTINUOUSLY.

QUESTION (IN CANTONESE):

THE DOCUMENT?

THE PROBLEM NOW ONLY ON THE WORDING OF

/S FOR