CONFIDENTIAL
125663
MDHIAN 6041
EOPLE READ EXAGGERATED PRESS REPORTS, THEY BECAME NERVOUS. HE ASSURED THE PREMIER AGAIN THAT THE PURPOSE OF THE NATIONALITY PACKAGE WAS SOLELY TO GET PEOPLE TO STAY IN HONG KONG AND TO CALM THEM DOWN. JUST AS CITIC HAD TAKEN AN INTEREST IN HONG KONG TELECOMS SO THE CHINESE GOVERNMENT MIGHT TAKE AN INTEREST IN THE NEW CONTAINER TERMINAL AND AIRPORT OR AT LEAST TO ENCOURAGE THE DEVELOPMENT. THE DEBT WOULD CERTAINLY BE PAID OFF BY THE EARNINGS OF THE NEW AIRPORT. IF THE DEVELOPMENT WERE NOT MADE IT WOULD AFFECT CONFIDENCE IN HONG KONG. DID THE PREMIER AGREE ?
11. LI PENG SAID THAT HE UNDERSTOOD THAT THERE WAS A NEED FOR DEVELOPMENT OF THE INFRASTRUCTURE IN HONG KONG. THE CURRENT AIRPORT WAS OPERATING AT FULL CAPACITY AND THE CHINESE GOVERNMENT DID SEE THE PROBLEM. IT WAS NECESSARY TO BUILD A NEW AIRPORT IN HONG KONG. HE COULD SEE THAT THE CURRENT CONTAINER PORT WAS ALSO FALLING SHORT OF THE NEEDS OF HONG KONG. HE WELL UNDERSTOOD THE NEED TO BUILD PARALLEL PROJECTS FOR THE EFFICIENT USE OF THE PROPOSED NEW FACILITIES. BUT HE COULD NOT HELP FEELING SURPRISED THAT THE PROJECT WOULD COST SO MUCH, AND HE THOUGHT THAT THE TIME FOR THE REPAYMENT OF LOANS POSED PROBLEMS. LI PENG ADDED THAT CHINA HAD RECENTLY GOT A NEW AIRPORT AT SHENZHEN. IT WAS COSTING US DOLLARS 300 MILLION AND HAD A 3,400 METRE RUNWAY WHICH COULD TAKE BOEING 747'S. IT WOULD BE IN OPERATION IN 1991. IN TERMS OF DISTANCE, IT WAS ONLY ONE HOUR'S DRIVE FROM HONG KONG. MOREOVER, IN THE REGION OF SHENZHEN THERE WAS A GOOD SITE FOR A BIG CONTAINER TERMINAL WHICH COULD HANDLE SHIPS OF UP TO 100,000 TONNES. IT WOULD NOT COST SO MUCH TO BUILD A NEW CONTAINER TERMINAL NEAR SHENZHEN. THESE PROJECTS WERE MORE ECONOMICALLY EFFICIENT, AND THEREFORE HE HAD TO CONFESS HE DID NOT ADMIRE THE AMBITIOUS EXTENT OF THE HONG KONG SCHEME.
12. NEVERTHELESS, IT WAS NOT FOR CHINA TO INTERFERE IN THE MATTER SINCE IT WAS A QUESTION FOR THE BRITISH ADMINISTRATION. HE HIMSELF HAD NOT SEEN ANY FEASIBILITY STUDIES. HIS PERCEPTION WAS ONLY BASED ON COMMON SENSE AND THE NEED FOR CHINA TO TAKE A PRUDENT APPROACH. HE WOULD LIKE TO SEE SOMETHING OF THE FEASIBILITY STUDY, AND HE WOULD WAIT UNTIL THE CHINESE GOVERNMENT WAS FORMALLY ASKED TO EXPRESS AN OPINION. UNTIL THEN CHINA WOULD REFRAIN FROM COMMENT. HE WENT ON, HOWEVER, TO STATE BLUNTLY THAT THERE WAS A SHORTAGE OF FUNDS AT PRESENT IN CHINA AND CHINA WOULD NOT BE ABLE TO COME UP WITH ANY MONEY TO INVEST IN THE PADS SCHEME.
13. LI PENG AGREED THAT CONTACTS SHOULD BE STRENGTHENED BETWEEN THE TWO SIDES EITHER THROUGH THE EMBASSIES OR THROUGH SPECIAL
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