UNCLASSIFIED
HKCB 182/4
UNCLASSIFIED
FM HONG KONG
TO IMMEDIATE FCO
TELNO 1859
OF 10094OZ JUNE 91
INFO IMMEDIATE PEKING, UKREP JLG HONG KONG
TOP COPY Q DIST?
(56)
133310
MDHIAN 0413
NEW AIRPORT: PRESS REPORTS
1. A NUMBER OF PRESS REPORTS ON SATURDAY QUOTED CHINESE SOURCES. CHEN RONGCHUN, HEAD OF NCNA FOREIGN AFFAIRS DEPARTMENT, REPEATED THE CHINESE POSITION IN FAMILIAR TERMS. HONG KONG SHOULD SET ASIDE ADEQUATE RESERVES. THE CHINESE DID NOT WANT THE BRITISH TO RAISE LOANS. IF THE AIRPORT PROJECT WAS SHELVED THE RESPONSIBILITY WOULD NOT LIE WITH THE CHINESE GOVERNMENT: THE BRITISH SHOULD PROVIDE ADEQUATE REASONS. BRITAIN MAKING DECISIONS FOR THE FUTURE SARG WAS INTERFERENCE IN ADVANCE.
2. RADIO ONE QUOTED CHINESE SOURCES SAYING THAT PROGRESS HAD BEEN DIFFICULT AT RECENT AIRPORT TALKS BECAUSE THE BRITISH SIDE HAD MADE NEW REQUESTS, INCLUDING PERMISSION FOR HONG KONG TO RAISE A HKD10 BILLION LOAN AND FOR HKG TO BE GUARANTORS OF PUBLIC COMPANY BORROWING, AND THAT THIS BORROWING WOULD HAVE NO LIMIT AND WOULD EXTEND BEYOND 1997. THE BRITISH HAD ALSO PROPOSED THAT HKG AND THE AIRPORT AUTHORITY SHOULD BE ALLOWED UNILATERALLY TO APPROVE AIRPORT RELATED FRANCHISES GOING BEYOND 1997. THE CHINESE CONSIDERED THESE REQUESTS WERE UNACCEPTABLE.
WILSON
YYYY
MAIN
PADS SECRET
LIMITED
HKD
HD/FED
HD/NEWS D
HD/PUSD
31
DISTRIBUTION
40
HD/PLANNERS
PS
PAGE
PS/LORD CAITHNESS
PS/PUS
SIR J COLES
MR BURNS
1
UNCLASSIFIED
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