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7. WE WILL NOT BE IN A POSITION TO TELL THE CHINESE OF OUR FINAL THINKING ON THE AIRPORT RAILWAY IN MID-JANUARY. BUT WE ARE LIKELY TO HAVE A FAIRLY CLEAR IDEA OF OUR INTENTIONS BY THEN. THE INDICATIONS AT THE MOMENT ARE THAT WE MAY DECIDE TO DEFER THE RAILWAY FOR 4 OF 5 YEARS. IF SO, THE LEVEL OF OUR RESERVES IN 1997 COULD BE ABOUT HKD10 BILLION HIGHER THAT THE FIGURE WHICH WE HAVE GIVEN THE CHINESE. WE WOULD EXPECT THEM TO FIND THIS VERY SIGNIFICANT.
8. INSOFAR AS THE RUNWAYS ARE CONCERNED, OUR THINKING IS GOING IN THE DIRECTION OF FORMING THE SITE FOR BOTH OF THEM IN ONE CONTRACT
AND THE
EARLY CONSTRUCTION OF THE SECOND RUNWAY. THERE COULD BE A NUMBER OF FINANCIAL AND TECHNICAL ADVANTAGES IN THIS COURSE OF ACTION. THIS WOULD BE UNLIKELY TO AFFECT GREATLY THE OVERALL COSTS OF THE AIRPORT PROJECTS BEFORE 1997 (AND CERTAINLY ANY EXTRA COSTS ON THIS WORK BEFORE 1997 WOULD IN NO WAY OFFSET THE VERY LARGE QUOTE SAVINGS UNQUOTE FROM DEFERRAL OF THE AIRPORT RAILWAY).
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