TNAG-2255-FCO40-3239-Hong-Kong-Port-and-Airport-Development-Strategy-(PADS)-gene-1991 — Page 74

CONFIDENTIAL

102341

MDH 5399

ARRANGEMENTS, THE CHINESE HOPED THAT HONG KONG'S FISCAL RESERVES WOULD BE SUFFICIENT TO LAST UNTIL 2007, SO THAT THE SAR WOULD HAVE THE GUARANTEE OF 10 YEARS OF ECONOMIC STABILITY. ALL SECTIONS OF THE COMMUNITY IN HONG KONG HAD REQUESTED THAT THEY BE WIDELY CONSULTED ON THE TERRITORY'S LARGE-SCALE INFRASTRUCTURAL PROJECTS. IT WAS THEREFORE NECESSARY AND FEASIBLE TO SET UP A CONSULTATIVE COMMITTEE WITH WIDE REPRESENTATION. AS THE AIRPORT AUTHORITY WOULD BE RESPONSIBLE FOR THE ACTUAL IMPLEMENTATION OF THE NEW AIRPORT PROJECT, WHICH WOULD EXTEND BEYOND 1997, IT WAS NECESSARY THAT THE ENACTMENT OF THE AIRPORT AUTHORITY ORDINANCE BE DISCUSSED BETWEEN THE TWO SIDES. THESE THREE PROBLEMS WERE INTERRELATED. UNLESS THEY WERE SOLVED AT THE SAME TIME, IT COULD NOT BE GUARANTEED THAT THE NEW AIRPORT WAS PRACTICABLE, SCIENTIFIC AND IN LINE WITH THE PRINCIPLE OF ''LESS INVESTMENT AND HIGH COST-EFFECTIVENESS''. THE CHINESE SIDE HAD MADE REASONABLE AND CONSTRUCTIVE OPINIONS ON THESE THREE PROBLEMS DURING THE THIRD ROUND OF TALKS. FURTHER TALKS WOULD NEED TO BE CONDUCTED. LU PING'S VISIT WOULD PROVIDE A GOOD CHANCE FOR ANOTHER ROUND OF DISCUSSIONS.

WILSON

YYYY

ΜΑΙΝ

77

.PADS

DISTRIBUTION

78

PUSD

LIMITED

HKD

COMED

ERD

ECONOMIC ADVISERS

HD/FED

NEWS D

RAD

PS/LORD CAITHNESS

PS/MR LENNOX-BOYD

MR BAYNE

MR MCLAREN

MR MILES

MR BURNS

PLANNERS

ADDITIONAL

MR YAXLEY HKGO LONDON

NNNN

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