TNAG-2143-FCO40-3062-Hong-Kong-Port-and-Airport-Development-Strategy-(PADS)-1990 — Page 80

1oC. Many of these issues in fact are v

Government's conceal, making Government better able to handle tha uncertainties than the private gectar, Whila obviously Government could have provided assurances and support to privata dovelopers

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lelent to assuage whatever concerns they might have nad war chesa uncertainties, we felt that a better approach a mora economic approach would be to build the bridge first, leaving open the possibility of privatizing Later when the

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as weza mesolvad.

felt that 1 tangible demonstration of cus consitaent to the PADS project would be appropriata at this sima.

As indicatad, proceeding on

construct basia vill be lass expansive, faster and less complex than doing the project initially as 1 privatized project.

Was the attitude of the PRC a factor in the decision not to privatize this project at this time?

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NO. As we have said all along, the PADS project generally, and the LFC as the first major that project, is

ament of 1 Hong Kong project, While we welcome support and involvement from the PRC, and are delighted that a delegation from China will be meeting with us this sonth to be briefad on the latest developments, it is for Hong Kong to decide on the proper approach to building its new airport. Is this a reaction to a lack of private sector interest in the LFC?

No.

While of course the technology involved in the 17C is demanding, which necessarily limits the number of firms able to bid, it is our impression that several bidding consortia had been formed and were intending to bid on the project.

Was Mr. Gordon Wu's proposal a factor in this decision?

No. As we have indicated, we welcome Mr. Wu's interest and constructive suggestions on the PADS project. A statement was issued yesterday containing the results of our analysis of his Proposals to date. While there may be

opportunities in the future to incorporate certain of his suggestions, his proposal was not a factor in our decision in this case. The Lantau Fixed Crossing remains a vital element of the overall PADS program.