XN000022-1995-06-30 — Page 5

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Government welcomes Airport Committee accord

The Financial Secretary, Sir Hamish Macleod, today (Friday) welcomed the agreement reached on the Financial Support Agreements (FSAs) for the new airport and the airport railway by the British and Chinese sides of the Airport Committee.

"The two financial support agreements to be signed between the Hong Kong Government, the Mass Transit Railway Corporation (MTRC) and the future Airport Authority (AA) form an essential part of the overall financing arrangement for the airport and the airport railway as they provide the Government assurances needed to allow the two organisations to arrange borrowings from banks and other institutional lenders," said Sir Hamish.

"The air cargo services are major franchised services essential for the operation of the new airport. This agreement is a big step forward in the franchise award process which the PAA has been engaging in for more than one year and I hope to see the award of the other major franchises in the coming months," he said.

In a Joint Communique signed this morning (Friday) by the leaders of the two sides in the Airport Committee, both sides expressed their determination and confidence that construction of the new airport and airport railway will proceed with all due speed to full completion as soon as possible.

The British side reaffirmed that, on the basis of the continuing progress of the Airport Core Programme, the seven projects directly funded by the Hong Kong Government together with the Western Harbour Crossing project will be completed before June 30, 1997 and the new airport at Chek Lap Kok and the airport railway will be completed to the maximum extent possible by June 30, 1997.

The Chinese side reaffirmed its support for the construction of the new airport and related projects, and reconfirmed that obligations related to the airport projects entered into or guaranteed by the Hong Kong Government will continue to be valid and be recognised and protected by the Hong Kong Special Administrative Region Government from July 1, 1997.

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Separately in an Agreed Minute signed this morning by the leaders of both sides in the Airport Committee, the Chinese side agreed the terms of the two franchise agreements to be entered into by the Airport Authority with Hong Kong Air Cargo Terminals Limited and Asia Airfreight Terminal Company Limited for the provision of air cargo services at Chek Lap Kok and confirmed that they will continue to be valid after the transfer of sovereignty.

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