TNAG-1268-FCO40-1617-China-s-economic-relationship-with-Hong-Kong-Shenzhen-econom-1983 — Page 6

HOF 0029/13

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RR PEKING

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NO DISTRIBUTION

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НСК бани

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See 47

See 1,20

HEK 295/1 (1984)

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4384 47

RESTRICTED

FM BTC HONG KONG 1909152 DEC 82

TO PRIORITY DTI

TELEGRAM NUMBER OTTER 267 OF 19 DECEMBER

INFO PEKING (FOR TOWLSON) FCO

215-3946

FOR HENDERSON, PEP, FROM PERRY

SHENZHEN INTERNATIONAL AIRPORT (SIA)

-S JARED

L

Taken

1. YOUR CTTER 266 GAVE ME USEFUL WARNING FOR THE VISIT I RECEIVED ON 16 DECEMBER FROM MIKE HALPER, MD OF EPITISH AIPFORTS INTERNATIONAL (BAT) AND MIKE HUGHES OF BAA, THEY HAD SPENT 3 DAYS IN SHENZHEN, ACCOMPANIED BY AN INTERPRETER-ASSISTANT FROM VOCEN I PEKING, AUD HAD SIGNED AN AGREEMENT TO EXPLORE THE MODALITIES OF FORMING A JOINT VENTURE TO DESIGN, CONSTRUCT AND PUN AN INTERNATIONAL AIRPORT IN XIXIANG, JUST OUTSIDE THE WESTERN BORDER OF THE SE?.

2. HALPER AND HUGHES HAD SPENT ALL 3 DAYS WITH OFFICIALS FROM SHENZHEN SEZ DEVELOPMENT CORFORATION (SEZDC) AND THE SHENZHEN INTERNATIONAL AIRPORT PLANNING AND CONSTRUCTION OFFICE (SIAPCO), AND HAD VISITED THE PROPOSED SITC. THE CHINESE CAID THAT PEKING

HAD AUTHORISED PLANNING TO PROCEED FOR AN AIRPORT WITH TWO RUNWAYS CAPABLE OF TAKING 7473. THE SITE CHOSEN MEANT THAT AT LEAST HALF THE AIRPORT WOULD BE ON LAND TO BE RECLAIMED NEXT TO THE FROPOCED ROUTE OF GORDON WU'S SUPER-HIGHWAY TO CANTON. 3A1 ESTIMATED THE AIRPORT CONSTRUCTION COST TO BE AT LEAST US DOLLARS 300 MILLION, AND SAID THAT THE CHINESE WERE CALCULATING 2-3 YEARS FOR PLANNING AND THE SAME FOR CONSTRUCTION, WHEREAS BAI WOULD PECKON A 13 YEAR TOTAL TO BE NORMAL.

3. THE FINANCIAL VIABILITY OF THIS PROJECT WILL DEPEND NOT ONLY ON DUTY-FREE ASPECTS OF THE GEZ AND ON ITS TOUPIST AND INDUSTRIAL DEVELOPMENT (241 WERE MORE IMPRESSED BY THE POTENTIAL OF THESE

THAN MANY RECENT VISITORS TO CHENZHEN). OTHER MAJOR FACTORS WILL BE: WHETHER OR HOT OIL IS DISCOVERED IN COMMERCIAL QUANTITIES OFF

THE PEARL RIVER ESTUARY, AND WHETHER OR NOT HONG YONG'S FUTURE

GROWTH DEMANDS A SECOND AIRPORT (AND IF SO, WHETHER ONE IS

BUILT IN HONG KONG). THE CHINESE MADE IT CLEAR TO 3A1 THAT THEY

REGARDED THE FUTURE OF SIA AS HONG KONG'S SECOND AIRPORT.

•

4. BAI SET OUT WITH THE INTENTION OF SEEKING TO SECURE A CONTRACT

FOR A FEASIBILITY STUDY THE CHINE E HOWEVER WISHED TO DISCUSS

THE FORMATION IF A JV TO DESIGN, NANCE, CONSTRUCT AND MANAGE

THE AIRPORT. DAY AGPEED TO EXPLORE THE POSSIBLE FINANCIAL AND