TNAG-2143-FCO40-3062-Hong-Kong-Port-and-Airport-Development-Strategy-(PADS)-1990 — Page 154

UNCLASSIFIED

112401 MDLIAN 6439

ON THE PRINCIPLE OF 'THE HIGHER THE RISK THE GREATER THE REWARD"

WITH THE LIKELY RESULT THAT THE PROJECT WOULD HAVE BECOME MORE COSTLY IN TERMS OF GOVERNMENT SUPPORT THAN WE BELIEVE TO BE JUSTIFIED. IT WOULD THUS HAVE BECOME MORE EXPENSIVE FOR THE HONG KONG TAX-PAYER.

AN IMPORTANT ELEMENT OF THE PORT AND AIRPORT DEVELOPMENT STRATEGY IS THE OPPORTUNITY IT PROVIDES FOR PRIVATE SECTOR FINANCING. THE COST OF THE LANTAU BRIDGE REPRESENTS LESS THAN 10

PER CENT OF THE WHOLE PROJECT AND SUBSTANTIAL OPPORTUNITIES REMAIN FOR PRIVATE SECTOR INVOLVEMENT IN SUCH MAJOR PROJECTS AS THE AIRPORT ITSELF, THE PORT, THE AIRPORT RAILWAY AND THE THIRD CROSS HARBOUR TUNNEL. WE BELIEVE THAT THE CERTAINTY INJECTED INTO

THE WHOLE PROJECT BY OUR DECISION TODAY WILL DO MUCH TO ENCOURAGE INVESTMENT IN THESE OTHER PROJECTS, AND WE WILL OF COURSE DO ALL WE CAN TO FACILITATE THIS.

WILSON

YYYY

ΜΑΙΝ

76

DISTRIBUTION

86

.HK AGREEMENT

LIMITED

HKD

HD/FED

HD/PLANNERS

HD/CONSULAR D

NEWS D

NPDD

PUSD

PS

PS/LORD CAITHNESS

PS/PUS

MR P J WESTON

MR MCLAREN

SIR A WATTS

MR BURNS

MRS SUTHERLAND MR BLATHERWICK

ADDITIONAL

HK AGREEMENT

NNNN

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UNCLASSIFIED