CONFIDENTIAL
LORD CAITHNESS' TALKS WITH CHINESE VICE FOREIGN MINISTER,
TIAN ZENGPEI: 21 NOVEMBER 1990
HK c. 182 12
HONG KONG BRIEF NO
: PADS
2 C NOV 1990
Points to Make
Project has our full backing.
Essential if Hong Kong is
to remain an international financial and trading centre. Kai Tak already crowded and will be saturated by mid 1990s. If HKG does not press ahead with building replacement airport, Hong Kong will suffer consequences of having
obsolete facilities.
-
Recent opinion poll shows strength of public support for
PADS.
-
Hope that frank exchange of views between Hong Kong and Chinese experts last month and detailed financial information provided by HKG will have helped to reassure Chinese side about financial feasibility of PADS. HKG will continue to keep Chinese side closely informed.
Are there any aspects of project on which Chinese side would welcome further information or clarification?
- No question of airport project imposing financial burden on SAR after 1997. HKG could if they wished finance core projects without recourse to borrowing. Taking into account the Land Fund, Hong Kong's resources in 1997 likely to be of same order as a present. Additional revenue will also be generated by Lantau fixed crossing and airport itself. There is also the Exchange Fund, which provides backing for Hong Kong dollar and is therefore part of HKG's financial
assets.
ATPACB/1
CONFIDENTIAL
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