TNAG-2264-FCO40-3261-Hong-Kong-Port-and-Airport-Development-Strategy-(PADS)-gener-1991 — Page 150

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proposals will be allowed for discussion between the two sides in eade

case. Any decision will give full weight to the Chinese Government'

views. The governing criteria in the case of a decision on a

franchise will be the profitability and efficiency of that franchise;

I

(ii) The British side will consult the Chinese side within the Airport

Committee before the Hong Kong Government proceeds with any major ·

airport project other than those in the Annex to this Memorandum and

any of the current Airport Core Programme projects in the Annex for

which the bulk of government expenditure will fall after 30 June 1997.

Such projects will only be initiated if the two sides have reached a

common view concerning them.

D. The Chinese Government will adopt a positive attitude to necessa

and reasonable borrowing by the Hong Kong Government to be repaid

after 30 June 1997. If the total amount of debt to be repaid after

30 June 1997 will not exceed HK Dollars 5 billion, the Hong Kong

Government will be free to borrow as necessary while informing the

Chinese Government. If the total amount of such debt will exceed HK

Dollars 5 billion such borrowing will only proceed if a common view has been reached concerning the proposal.

E. On the basis of the above understanding the Hong Kong Government

will plan its finances with the firm objective that the fiscal

réserves on 30 June 1997 to be left for the use of the Hong Kong Mt. Special Administrative Region Government will not be less than HK

Dollars 25 billion.

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