TNAG-2275-FCO40-3274-Hong-Kong-and-the-media-1991 — Page 45

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177707

MDLIAN 6988

CHINA-FUNDED COMPANY DIRECTLY UNDER THE MANAGEMENT OF THE GUANGDONG PROVINCE. THE REPORTS NOTED THAT NO INVITATION FOR TENDERS HAD YET BEEN MADE TO THESE CONSORTIA.

7. TVB AND SOME PAPERS (18.3) QUOTING SOURCES, REPORTED THAT THE HONG KONG GOVERNMENT HAD INDICATED TO THE CHINESE THAT IT WAS IMPOSSIBLE FOR IT TO EARMARK 50 BILLION HONG KONG DOLLARS IN FISCAL RESERVES FOR THE SAR GOVERNMENT AT THIS STAGE AND THAT IF THE HONG KONG GOVERNMENT COULD NOT REACH AN AGREEMENT WITH THE CHINESE WITHIN A FEW WEEKS, IT WOULD HAVE TO MAKE A DECISION TO EITHER ABANDON THE AIRPORT PROJECT OR SHOULDER THE RESPONSIBILITY OF ITS CONSTRUCTION BY ITSELF REGARDLESS OF THE CHINESE STAND. THE SOURCES NOTED THAT LU PING HAD BEEN TOLD THAT THE REQUEST FOR

50 BILLION HONG KONG DOLLARS IN THE FISCAL RESERVES WAS IN BREACH

OF THE PRINCIPLES OF THE JOINT DECLARATION. QUOTING BRITISH SOURCES, THE EXPRESS (18.3) REPORTED THAT THE BRITISH HAD INDICATED TO THE CHINESE THAT THEIR PROPOSALS FOR THE FINANCIAL

ARRANGEMENTS FOR THE AIRPORT AND THE AIRPORT AUTHORITY WERE UNACCEPTABLE. THE PAPER NOTED THAT ALTHOUGH THE CHINESE HAD AGREED TO REDUCE THE AMOUNT IN THE FISCAL RESERVES TO 35 BILLION HONG KONG DOLLARS, THE BRITISH HAD STILL NOT GIVEN ANY CLEAR RESPONSE TO THE PROPOSAL. THE HONG KONG ECONOMIC JOURNAL (18.3) REPORTED THAT THE CHINESE HAD PUT FORWARD VARIOUS PROPOSALS TO THE HONG KONG GOVERNMENT AFTER THE THIRD ROUND OF TALKS AND WERE WAITING FOR A REPLY. A SOURCE QUOTED IN THE REPORT SAID IF EVERYTHING WENT SMOOTHLY, IT WOULD BE UNNECESSARY TO HOLD A FOURTH ROUND OF TALKS.

LAND FUND

8. LU PING WONDERED IF THERE WOULD BE 80 BILLION HONG KONG DOLLARS IN THE LAND FUND BY 1997, MEDIA REPORTS (13.3) NOTED. FINANCIAL SECRETARY, SIR PIERS JACOBS, SAID (14.3 REPORTS) THAT HE STOOD BY HIS EARLIER ESTIMATE THAT THE FUND WOULD REACH 80 BILLION HONG KONG DOLLARS, ADDING THAT THIS WAS A REALISTIC ESTIMATE. QUOTING CHINESE SOURCES, ATV-HOME AND SOME PAPERS (14.3) REPORTED THAT SIR PIERS' ESTIMATE WAS TOO OPTIMISTIC AND THAT AN INITIAL ESTIMATE BY THE CHINESE SIDE WAS THAT THERE WOULD BE 40 BILLION HONG KONG DOLLARS BY 1997 BECAUSE OF AN EXPECTED DOWNTURN IN THE HONG KONG ECONOMY IN THE NEXT FEW YEARS. TA KUNG PAO (14.3) QUOTED THE SENIOR REPRESENTATIVE OF THE CHINESE TEAM ON THE LAND COMMISSION, SUN YANSHENG, AS SAYING THAT SIR PIERS' FORECAST WAS TOO OPTIMISTIC.

DENG XIAOPING

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