TNAG-2141-FCO40-3060-Hong-Kong-Port-and-Airport-Development-Strategy-(PADS)-1990 — Page 151

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Q...I will try and keep them brief then. Given the flurry of activity that you are now involved in with the Chinese, don't you wish that you had talked to them about it earlier and why didn't you? That is the first question, the next two are: Are you raising with them the possibility of the SAR Land Fund being used and are they raising with you the possibility of shifting the site to Shenzhen or some other site?

A. No,

no and no. I don't think we could have talked to them any earlier about the airport. There was really too little to talk about. There is not much point in talking to

For people unless you have really got something to say. God's sake don't quote me on that. The second question, the SAR Land Fund, again that has been talked about in the press from time to time, I think it is worth remembering that the SAR Land Fund will be part of the SAR's money in 1997..

Q...By government officials as well. In the past...

A I think they have been, I think that discussion has been prompted by the press. The SAR Land Fund doesn't really come into this. It will eventually come into the SAR's

not... under the terms of the joint

reserves will it

declaration.

Q...Do you envisage that it is possible that the SAR Land Fund will be used in financing the airport?

A.

Q27.

I think it is unlikely.

Economic Journal. Many bankers have voiced concern that government borrowings in the near future would push up

Has the interest rates in the local capital market. government assessed its effects and would you say, hire, other consultants to study in more detail the whole financial implications.

A.

I think that is a very important question. I am glad I stayed on to take it. The financing of the airport, obviously, is a complex matter. We will have to bear in mind not only the effect on our own accounts but also the effect on inflation and so on. On the exchange rate of our currency. On interest rates. On a whole number of factors. So we do feel that we need plenty of advice on this particular point. We will certainly take into account some of the factors that you mentioned. It has to be worked out very carefully so that it doesn't have an adverse affect in any area.