UNCLASSIFIED
051444
MDLIAN 7501
CHINESE NATIONALS HAD BEEN APPROVED, THE HK DAILY NEWS (30.12) REPORTED. THE PAPER NOTED THAT A PRINCIPAL ASSISTANCE SECRETARY FOR SECURITY SAID THAT THIS SHOWED THAT THE WORRY THAT THE MOVE WOULD LEAD TO ''PEKING PEOPLE RULING HK'' WAS UNNECESSARY.
COLVIN HOUSE
5. QUOTING THE CHINESE SIDE, THE EXPRESS (25.12) REPORTED THAT CHINA HAD ASKED BRITAIN FOR ANOTHER BUILDING FOR MEETINGS OF THE JLG AND THE LAND COMMISSION IF IT WISHED TO USE THE COLVIN HOUSE SITE FOR THE FUTURE BRITISH CONSULATE.
AIRPORT
6.
WAH KIU YAT PO (27.12) REPORTED THAT THE HK GOVERNMENT HAD IN OCTOBER SUBMITTED A DOCUMENT TOGETHER WITH A TRANSLATION TO THE CHINESE SIDE ON A CONDENSED PLAN FOR CONSTRUCTING THE CHEK LAP KOK AIRPORT AND FINANCIAL ESTIMATES FOR 1991 TO 1997. THE PAPER QUOTED SOURCES AS SAYING THAT THE GOVERNMENT HAD DECIDED THAT THE AIRPORT AND PORT DEVELOPMENT PROJECTS SHOULD BE SEPARATED, AND THAT WORK PACKAGES RELATED TO THE AIRPORT WOULD PROCEED FIRST WHILE PORT DEVELOPMENT WOULD BE SLIGHTLY POSTPONED. A LANDS AND WORKS SPOKESMAN WAS, HOWEVER, QUOTED (28.12) AS SAYING THAT THE GOVERNMENT HAD NO INTENTION OF SEPARATING THE AIRPORT AND PORT DEVELOPMENTS BUT THAT MANPOWER AND RESOURCES WOULD BE CONCENTRATED ON THE AIRPORT. THE PAPER NOTED THAT THE DOCUMENT SAID THAT THE CONSTRUCTION COSTS OF THE AIRPORT PROJECT WOULD BE DOLLARS 103 BILLION AND THAT THE GOVERNMENT WOULD BE USING DOLLARS 72 BILLION FROM THE RESERVES SO THAT BY 1997, THERE WOULD ONLY BE DOLLARS 5 BILLION LEFT IN THE FISCAL RESERVES. THE DOCUMENT ESTIMATED THAT WHEN THE FIRST RUNWAY BECAME OPERATIONAL IN 1997, THE NEW AIRPORT WOULD BRING IN DOLLARS 18.2 BILLION IN REVENUE AND THAT ADDED WITH PROCEEDS FROM LAND SALES AFTER 1997 AND THE LAND FUND, THE SAR GOVERNMENT SHOULD HAVE ABUNDANT RESERVES. A MEMBER OF THE PROVISIONAL AIRPORT AUTHORITY, HO SAI- CHU, SAID THAT HE BELIEVED THAT THE AMOUNT OF THE LAND FUND, COUPLED WITH INTEREST, WOULD AMOUNT TO DOLLARS 70 BILLION IN 1997 IF THERE WAS NO MAJOR UPS-AND-DOWNS IN THE PROPERTY MARKET.
7. HO SAI-CHU SAID HE HOPED THAT TWO-THIRDS OF THE COSTS OF THE NEW AIRPORT WOULD BE SHOULDERED BY THE HK GOVERNMENT WHILE THE REST WOULD BE BORNE BY THE PRIVATE SECTOR, ADDING THAT CHINA'S SUPPORT FOR THE PROJECT WOULD ENCOURAGE MORE PRIVATE-SECTOR PARTICIPATION. AN ASSISTANT FINANCIAL SECRETARY WAS QUOTED (28.12) AS SAYING THAT IT WAS ESTIMATED THAT UP TO HALF OF THE CONSTRUCTION COSTS OF THE AIRPORT AND RELATED WORKS WOULD BE
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