TNAG-2145-FCO40-3064-Hong-Kong-Port-and-Airport-Development-Strategy-(PADS)-1990 — Page 143

Background

PADS

References:

A.

CONFIDENTIAL

B.

C.

Hong Kong telno 3223 of 5 November Hong Kong telno 3378 of 16 November. Hong Kong telno 3255 of 7 November Hong Kong telno 3386 of 16 November

D.

Finances

1. The cost of the Airport Core Projects which will enable airport to start operating at time of transition has been

estimated at HK$ 103 bn. (The HKG are no longer quoting the

cost of PADS as a whole because this contains a number of

elements dependent on commercial demand.) Hong Kong's fiscal

reserves are currently HK$72 bn. The size of the SAR Land

Fund is HK$24 bn (about the size of Hong Kong's total

reserves in 1984-5) and is likely to rise to around HK$91 bn

by 1997. Potential land sales after 1997 resulting from

PADS and other reclamation are estimated at about HK$40 bn

(at 1990 prices). Additional revenue would also accrue from

the Lantau Fixed Crossing and the airport itself.

2.

At the meeting of experts in Hong Kong on 15-25 October,

the Chinese side asked the HMG to delay any major

announcements while discussions were still underway.

3. On 7 November, the Political Adviser gave the NCNA a

timetable of the various decisions and announcements which

will have to be made over the coming months and said that

there were a number of forthcoming major decisions (eg

airport railway, opening of second runway) on which we would be happy to consult the Chinese side at the next round of

expert talks (which will probably be held early in the New

Year).

ATPACB/3

CONFIDENTIAL