XN000022-1995-04-13 — Page 4

- 2 -

FS: No, we didn't discuss that. They were certainly telling us some of the things that they have done and some of the things that they are thinking of doing, they're planning to do, in terms of computerisation, in terms of training, in terms of streamlining procedures. And of course we are very ready to co-operate with advice or in any other way to help that process.

Question: Any talk about some of these infrastructure projects that will be straddling 1997, as far as balancing the funding, any more discussion on that?

FS: No, no, we weren't talking about that, no.

Question: Did the Chinese officials talk about something on the Economic Zone, the proposed Economic Zone in the delta area, and what role can Hong Kong play in it?

FS: No. We were really here dealing very specifically with Shenzhen and the particular projects that I have just talked about. I actually asked to see those projects, those are the ones that I have an interest in. Because obviously, when we are planning our own expansion, we want to have a clear idea of the direction of port and airport development here. I think, on the airport, it was confirmed that the airport here is very much a domestic airport. The number of international flights is quite small, so it really complements the role of Hong Kong.

Question: Any talks about the air-traffic control system and how that's going to work out?

FS: We didn't on this occasion, no, talk about it. It's not really my particular area, so we didn't talk about that.

Question: How about Yantian? Is it doing as good as predicted?

FS: I don't know if it is doing as well as predicted because I don't know what the prediction was but it is obviously in the very early stages. It's quite quiet, but has enormous scope for expansion in the sense that the land set aside, both for the actual berths and for the back-up areas, is huge. And it is deep water, so it has, I think, quite a lot of potential. They're going to have, of course, some of the same problems that we've got in terms of getting access by road and later by rail. They have got a rail link but at the moment it's the road link which matters. But they seem quite confident. The main partner, of course, is Hong Kong, is Hutchison, and they seem quite confident on the future of that port. But it is, at the moment, of course, very small. It has potential.

Thank you very much. Thank you.

End/Thursday, April 13, 1995