TNAG-2145-FCO40-3064-Hong-Kong-Port-and-Airport-Development-Strategy-(PADS)-1990 — Page 108

CODE 18-77

Mr Fifoot

Reference

CONFIDENTIAL

PADS: RUN DOWN OF THE RESERVES: SARG LAND FUND

RODADX/CL

1. Thank you for the clarification in your minute of 30 October. I agree that up to 30/06/97 the Chinese side (of the Land Commission) would need to decide on any deployment of the SARG land fund, presumably including any suggestion that HKG should borrow now against repayment in the future by the SARG Land Fund. But what happens to the fund post 1997? Annex II of the Joint Declaration is relevant up to 30/06/97. Are you aware of anything which signifies what the Fund may be used for post 1997? Clearly it would have to be part of the SARG's funds. Is it safe to assume that it would simply become part of the SARG's general reserves? Could anyone decide pre 1/7/17 on its fate; or would this have to be a matter for the Legislative Council post 1/7/97?

31 October 1990

CC:

Mr Burns

Mr Paul

Ms Major

Mr Furness

M V Stone

Hong Kong Department WH312

270 2651

CONFIDENTIAL