GF 323
H
CONFIDENTIAL
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international business community would reduce significantly should
shelve the project. Since Hong Kong had the financial capability to go it alone, HKG should persevere with the construction of the new airport, and; if necessary, reduce the scale; or prolong the construction period. Another worry was
that whilst Hong Kong's autonomy was secure for the time being, there was no guarantee that China would not make another attempt to interfere in other issues. Other respondents from pro-China unions, MACS, and Kaifong Associations, believed it was essential to obtain China's support for the project. They did not agree that Hong Kong must have a new airport by 1997, and were concerned that the huge cost would become a big financial burden, leaving little resources for other equally, if not more important, urgent non-airport related public works.
4.
They
More than half the contacts in North disrtict believed that Hong Kong should proceed with the airport regardless of whether or not China gave its blessing, since the future development of the Territory was of paramount importance. said consideration should be given to raising the profits tax to subsidize the financing of the project. Other contacts thought that in view of the so far fruitless negotiations between CPG/HMG, and with time so short, it might be better if Hong Kong shelved the entire project, and consided upgrading Kai Tak to meet future
demands. Contacts were of the view, that to allow China to
interfere with Hong Kong administration before 1997, was too high
a cost to pay for a new airport. A small number of contacts saw the stalemate in the talks as only temporary, and the parties, would soon come to their senses, and reach and agreement, since PADS would be beneficial to all concerned. Recent developments,
contacts believed, was the result of a power play between CPG/HMG, with Hong Kong unfortunately caught in the middle of it.
Assessmnet Unit
Security Branch
CONFIDENTIAL
SCR 10/1476/82
1 May 1991
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