CONFIDENTIAL
106343 MDHIAN 5628
FROM THE FULL REVENUE OF LAND SALES AND 3 PER CENT PREMIUM ON RENTS, WE FORECAST THAT FISCAL RESERVES WILL INCREASE RAPIDLY FROM BETWEEN HKD 102 BILLION AND HKD 120 BILLION IN 1997 TO BETWEEN HKD 324 BILLION AND HKD 357 BILLION IN 2005. THIS WOULD, IN 2005, AMOUNT TO 145 PER CENT 170 PER CENT MORE IN REAL TERMS THAN THE RESERVES AT END 1984/85. THERE WILL THUS BE INCREASINGLY STRONG RESERVES DURING THE EARLY YEARS OF THE SAR'S EXISTENCE.
IV) NONE OF THE ABOVE TAKES INTO ACCOUNT THE CORE PART OF THE EXCHANGE FUND, IE. THE ACCUMULATED INVESTMENT EARNINGS. THIS IS NOW ALMOST DOUBLE IN REAL TERMS WHAT IT WAS AT END 1984/85. VERY STRONG RESERVE TO ENSURE THE STABILITY OF THE CURRENCY, IN ADDITION TO THE AMOUNT THAT BACKS THE NOTE ISSUE.
5. AIRPORT AUTHORITY.
THE AA ORDINANCE WILL BE BASED AS CLOSELY AS POSSIBLE ON MTRC ORDINANCE. GOVERNMENT WILL RETAIN POWER TO DIRECT THE AUTHORITY. APPOINTMENTS BY GOVERNOR INITIALLY FOR PERIODS FALLING SHORT OF 1997. THESE WILL COVER AN APPROPRIATE SPECTRUM OF EXPERTISE. CHINESE SIDE WILL BE INFORMED OF THEM IN ADVANCE. APPOINTMENTS STRADDLING 1997 WILL BE FOR DISCUSSION BETWEEN GOVERNOR AND SAR CHIEF EXECUTIVE DESIGNATE. IF CHINA SUPPORTS THE AIRPORT PROJECTS, PREPARED, WHEN AUTHORITY IS SET UP, TO APPOINT A HONG KONG BASED PERSON FROM BANK OF CHINA SISTER BANK AS A MEMBER.
-
6. ADVISORY COMMITTEE.
WANT TO KEEP PEOPLE OF HONG KONG WELL INFORMED. PREPARED TO CONSIDER ESTABLISHING AN ADVISORY COMMITTEE ON NEW AIRPORT ON LINES OF OTHER ADVISORY COMMITTEES IN HONG KONG. COMMITTEE WOULD NOT HAVE DECISION MAKING POWERS. GOVERNMENT WOULD PROVIDE INFORMATION TO HONG KONG PEOPLE THROUGH COMMITTEE, AND COMMITTEE COULD TRANSMIT VIEWS AND PROPOSALS TO GOVERNMENT. AN APPROPRIATE SPREAD OF OPINION AND EXPERTISE WOULD BE INCLUDED IN MEMBERSHIP. GOVERNOR TO APPOINT MEMBERS AS NORMAL. CHINESE SIDE WOULD BE TOLD OF PROPOSED MEMBERSHIP IN ADVANCE. COMMITTEE MIGHT HAVE SOME SUB- COMMITTEES, EG, OF BUSINESS PEOPLE, PROFESSIONALS, LOCAL INTERESTS AFFECTED BY THE NEW AIRPORT ETC..
WILSON
YYYY
2
PAGE CONFIDENTIAL
No comments yet.
Private notes are available after approval.