XN000022-1994-12-01 — Page 6

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FS: The short answer is no. I think on the railway, we've been quite open for some months, that the forecast for the section from Kowloon to Hong Kong, of course, was a delay until sometime in 1998. We know the reasons for that. But there is no refined and official date for the opening for the railway as a whole; and nor is there any refined date on the airport, as you know, we've been saying I think reasonably that we must wait for a few more things to be resolved before we try and refine the opening date.

Q: If the next committee meeting actually comes up with the financial support agreements, do you see things speed up considerably after that? By how much?

FS: Well, I think so far I'm pretty happy with the way things are going. We got the approval on the land side from the land commission quite swiftly after the agreement that came out. Talks are going on constructively on the FSAS, so hopefully that will not take too long, I'm not going to stick my neck out and try and guess when. We've then really got the bill to sort out, that will obviously take a bit longer. Legislation inevitably does. But so far, it's looking hopeful.

Q: Sir, regarding the interest rate. The figures come out from the US on the consumer index look strong and the bonds market in US goes down. Do you think the pressure for another adjustment for the interest rate is becoming greater before the end of this year, and what is your forecast for the upcoming months?

FS: Luckily financial secretaries aren't supposed to make forecast about interest rates, but what's been happening is I think very much what we would have hoped to happen. We don't of course pretend that we control US interest rates, clearly we don't but I think all commentators were agreeing last year that interest rates, from Hong Kong's point of view, should go up to dampen growth a bit, to help combat inflation - particularly the property market - and that's precisely what's happened. I guess most forecasts are saying, probably the upward trend in interest rates hasn't finished, nobody is going to stick their necks out and say when the next rise might be. But I am pretty relaxed (a) about where interest rates reached now they are not historically very high, actually and, (b) about one or two more increases. I think it's just what we need. We are not facing an extreme situation here.

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Q: Could you elaborate on the full list of property assets that you have just passed to the JLG Chinese side. What does it contain?

FS: It contains a list of government property but I am not the expert on exactly what the list is. I am sure that there will be a sensible dialogue with China if they want more details. Then no doubt they'll tell us exactly what'd been....