TNAG-2146-FCO40-3065-Hong-Kong-Port-and-Airport-Development-Strategy-(PADS)-1990 — Page 70

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341

BRITISH TRADE COMMISSION

HONG KONG.

18 December 1990

HKC 182/2

Pa

9JA 921

W

cc Mc Mclaren

Richard Rodgers Esq

PEP

DTI

Dear Richard,

M. BEARS. McStone: (thi).

HONG KONG AIRPORT PROJECT

1.

Plattacha

copy of the райливе стъ

Miso Marojen

Mr Stenc

21/12

I enclose a copy of a letter of 10 December from the Hong Kong Government's Information Section dealing with the Airport Project, together with its enclosed verbatim transcript of an 11 December (sic) Press Conference given by Hamish Macleod, Secretary for the Treasury, and others, called to make new announcements about the cost of the project.

2. The purpose of the Press Conference appears to have been an attempt to get the figure of HK$79 billion into the public arena as the overall cost of the project, instead of the HK$127 billion as used by the Governor when he gave the go- ahead for the project in October 1989 and which has been constantly quoted since. However, the lower figure excludes the cost of the related port development and of the railway link, while the higher figure used earlier includes both. The overall cost has in fact gone up if like is compared with like. The Press were somewhat confused by this announcement. Some papers announced that the project would be less costly, quoting the HK$79 billion. Those who had listened a little more carefully announced that costs in reality were higher.

3.

In my view there is some validity in excluding the cost of the related port development, partly because it will not be needed for some time, partly because it will be largely privately financed, and perhaps most of all because there are increasing doubts about whether the port extension on Lantau will be required in the foreseeable future. It is less legitimate, I would have thought, to exclude the railway. Currently the Hong Kong Government seems to be thinking of building in a railway facility, including the capacity for it in the transport links and bridge, but postponing the start

/of a.

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