TNAG-2251-FCO40-3235-Hong-Kong-Port-and-Airport-Development-Strategy-(PADS)-fina-1991 — Page 126

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there would still be a cushion of $15 billion to meet the

inflation in expenditure and

(adverse) difference

between

inflation in earnings on our fiscal reserves. The figure

of

$15 billion is 28% of the Government's share of the cost

of the ACP.

This means that costs will have to rise by at

least 37% above current price levels before we exhaust the

cushion. This is a highly unlikely eventuality, given

(a)

our insistence on for fixed price contracts

where appropriate;

(b)

an adequate supply of labour for the ACP;

(c)

the proven efficacy of existing expenditure

control/tendering procedures.

What will the SAR Government inherit?

3.

Even assuming we exhaust

the cushion, the SAR

Government will inherit in 1997

Set aside

SAR Land Fund

(All figures in $ billion

at 1997 prices)

25.0

88.0

113.0