CONFIDENTIAL
be able to handle 80 million.
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Before deciding to locate new airport at Chek Lap Kok, looked in detail at a number of other possible sites. But after examining the alternative sites, concluded that Chek Lap Kok was best choice.
Hong Kong Government also commissioned very detailed studies into financing of project. Expect up to 70% of airport to be financed by private sector. Have already begun to set aside funds for Government's share of project so that it can be financed without imposing any strain on reserves. Calculations suggest that debt can be repaid without any difficult from fees from airport and terminal. Revenue from redevelopment of Kai Tak and surrounding area will also provide substantial revenue in due course.
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No question of any ulterior commercial motive on our part. Contracts for new airport will not necessarily go to British concerns. Indeed a number of contracts have already been
awarded to non-British firms. Hong Kong Government goes out
to tender on all contracts.
Hope Chinese side will agree that it would give a big vote of confidence in Hong Kong's future development if new airport goes ahead smoothly.
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Confidence in viability of project would be greatly enhanced by a positive statement by Chinese Government. Vital if project is to attract large-scale international investment, thus reducing financial burden on Hong Kong
Government.
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Participation by Chinese institutions such as CITIC, Chinese Resources and the Bank of China would also be very
welcome.
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CONFIDENTIAL
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