TNAG-2264-FCO40-3261-Hong-Kong-Port-and-Airport-Development-Strategy-(PADS)-gener-1991 — Page 133

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IDENTICAL

B. The Chinese Government will support the construction of the

new airport and related projects. It will indicate clearly to

interested potential investors in accordance with the principles

enshrined in this Memorandum that obligations related to the

airport projects entered into or guaranteed by the Hong Kong

Government will continue to be valid and be recognised and

protected by the Hong Kong Special Administrative Region:

Government from 1 July 1997. The Chinese Government have accepted

that the Bank of China will play an appropriate part, for example

in the syndication of loans for the airport projects, and that

Chinese construction firms may compete in the normal way for

projects connected with the airport.

C. On important matters relating to the airport project that

straddle 30 June 1997, the Chinese and British Governments will

carry out consultations in a spirit of cooperation and in

accordance with the Sino-British Joint Declaration. An Airport

Committee will be constituted for this purpose under the auspices

of the Sino-British Joint Liaison Group, with membership drawn

equally from both sides. Its tasks will be as follows:

(i) The British side will consult the Chinese side within the

Airport Committee before the Hong Kong Government grants major

airport-related franchises or contracts straddling 30 June 1997 or

guarantees airport-related debt straddling 30 June 1997. The

Chinese side will adopt a positive attitude to such grants,

contracts and guarantees:

Up to one month after the British side.

provide details of the proposals will be allowed for discussion

: