included the airport railway, the Central Wanchai reclamation, and a contingency reserve of about HK$6 billion. All three of these items have been removed for the airport costing made public. It is legitimate to remove the airport railway- but only if it is not built. And the bulk of the : Central/Wanchai reclamation is unrelated to the airport and
so may be costed elsewhere: but it will still have to be done. But it is simply poor budgeting practice not to allow for any contingency. The figures can therefore be seen through and the Chinese can say that the Hong Kong Government at least partially is misleading the public as to the true
• costs.
Afair paint: but heave the importance of
But he is clearly
(c) Airport authority will be too powerful and independent:
9.
Lu is quoted as saying that the airport authority should not be turned into an independent kingdom and that China and Hong Kong should discuss the powers of the authority as well as its membership because it will straddle 1997. The Chinese may be taking up a theme started by the New Hong Kong Alliance headed by the former executive councillor T S Lo. He has suggested that the authority could become an "opposition party" in Hong Kong holding real political power.
It is
10. This area of complaint simply does not hold water. hard to conceive that the Chinese really think that the airport authority could become overpowerful. The Ordinance for the authority will, I am certain, state that the authority is subject to direction from the Governor-in-Council.
There can be no question of the authority becoming more powerful than either the HKG or the SARG wish.
(d) Civil service pensions could be at risk.
11.
The suggestion by Lu Ping that civil servants' pensions might be at risk, reported in Hong Kong telno 3693 but which I have been unable to find in the newspapers, will also cause civil servants to query whether PADS should be institued. is easy to prey on the fears of civil servants about their pensions.
Comment
12.
This is a peculiar outburst form Lu Ping, coming as it does at the same time as his comments that issues between the two sides should be discussed privately. It is also hard to square his comments with the Chinese offer made on
rubbing home his importance. Eutes this Mfusal me the FS
Va
13 December, that the second round of talks should take place on 19-22 December. If the Chinese are genuinely worried about the run down of the reserves, there are really only three solutions for HKG: abandon the project, raise taxes or borrow, with repayments beyond 1997. HKG are unlikely to abandon the project and would need to raise
EELAKC
following li promotion,
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