TNAG-0324-FCO40-360-Development-of-Kai-Tak-Airport-at-Hong-Kong-1972 — Page 35

(f)

CONFIDENTIAL

3

-

XCC(71)33

Costs: until the Consultants have completed their detailed report, it is impossible to provide more than a very rough estimate of costs, as follows:

Government:

Hardstandings, etc.

$mn

7.5

Access roads, vehicle parking, etc. 8.0

Airlines', agents' and consolidators'

office building

Consortium:

Air cargo building

Fixed and mobile equipment

(1974-1980), including data

processing equipment

3.0

6.0

50.0

71.5

(g)

In addition, Government would expect to recover from

the consortium the cost of the preparation of the Consultants' detailed report if it is accepted as the basis on which the terminal should proceed.

Land: a private treaty grant on terms similar to those approved for other grants of land within the airport boundaries.

5

All the potential participants have agreed that they would have no objection to the consortium "going public" at some future date.

6

The principal participants consider and this view is shared by Government that it is highly desirable that the chief executive of the consortium should be appointed as soon as possible. It is for this reason that, although there are many details still to be worked out, the advice of Honourable Members on the general principles involved is now required, so that detailed negotiations may begin with a view to the early formation of a company. As soon as it is formed steps will be taken to recruit and appoint a chief executive.

7

Honourable Members will be asked to advise, subject to the approval in principle of the Finance Committee of the Legislative Council to the appropriation of the necessary funds for Government's share of the equity capital, whether they agree with the establishment on the basis set out in paragraph 4 above of a consortium to build and operate the proposed new cargo terminal at Kai Tak International Airport.

(The Director of Civil Aviation (Mr T.R. THOMSON) will attend before the Council for the discussion of this item.)

18th June 1971 (CR 2/926/67)

COUNCIL CHAMBER

CONFIDENTIAL