TNAG-1622-FCO40-2236-Relations-between-Hong-Kong-and-China-1987 — Page 40

G.F. 326

9.

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appropriate to deal with the provincial authorities

rather than Shenzhen. CS asked SLW to take the lead

in drawing up a framework of areas to be discussed,

which could then be pursued by PA's Office in the

first instance with NCNA.

Action: SLW

SA/HE noted that DS (LW)1 had recently expressed confidence that Hong Kong's planning was adequate to

cope with developments in cross border traffic. He

was however concerned that Route X was not moving ahead quickly enough. CS said he understood that existing roads and the NT circular road were expected

to cope until Route X was completed in the mid 1990s,

but he agreed that it would be better if Route X could be advanced and asked S for T to investigate this.

Action: S for T

10.

PAFS(1) said that FB were considering ways of

financing the construction of Route X and had

identified four possibilities: the CWRF; Gordon Wu; privatisation à la Tate's Cairn; and drawing on the

SARG Land Fund. The third option was unlikely to

work, because there would not be lucrative capital

return in the same way as for Tate's Cairn, although the possibility of tolls could be examined.

thought the last option would be a reasonable bet, and

would be a better option to put to the Land Commission

than using the Fund for a second airport. S (GD)

agreed that this would be a distinct possibility.

He

QUARTERLY REPORT ON HONG KONG/CHINA ECONOMIC RELATIONS (PAPER

3/87)

11.

PAS(ES) E drew attention to four main points:

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