TNAG-2290-FCO40-3296-Relations-between-Hong-Kong-and-Macau-1991 — Page 199

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FM BTC HONG KONG

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TELNO 003

OF 270930Z FEBRUARY 91

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HKCOZO/1

13 MAR 1991

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Mir Sainty

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106222 MOLIAN 1547

INFO ROUTINE FCO, DTI (FOR ROGERS PEP), PEKING, HONG KONG INFO ROUTINE UKREP JLG HONG KONG

BTC HONG KONG AS C.G. MACAU

MACAU AIRPORT PROJECT

SUMMARY

Interesting to see whether this overtly defensive Puring were like

any of the proble

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1. CHINA AND THE MACAU ADMINISTRATION GIVE CONFLICTING SIGNALS OVER PROGRESS ON THE MACAU AIRPORT PROJECT AND CHINA'S ATTITUDE TOWARDS IT. DESPITE POSITIVE CHINESE GOVERNMENT STATEMENTS THEIR ATTITUDE ON PRACTICAL MATTERS IN HOLDING UP THE PROJECT.

DETAIL

2. THERE HAVE BEEN A NUMBER OF STATEMENTS RECENTLY ON THE MACAU AIRPORT. THE CHAIRMAN OF THE PROJECT COMPANY, AND IN EFFECT THE PROJECTS' CHIEF EXECUTIVE, SANTOS FERREIRA, ANNOUNCED ON 2 FEBRUARY THAT THE PROJECT WAS TO BE DELAYED FOR SIX MONTHS BECAUSE OF CHINESE CONCERNS OVER ALLEGED NOISE POLLUTION AND DELAYS IN THE DELIVERY OF SAND FROM CHINA. THE SIX MONTH DELAY WOULD ADD 180 MILLION PATACAS TO THE COST. HE SAID QUOTE EVERYTHING THAT DOES NOT DEPEND ON THE PEOPLE'S REPUBLIC OF CHINA IS ON SCHEDULE, BUT EVERYTHING THAT DEPENDS ON THE PEOPLE'S REPUBLIC OF CHINA IS DELAYED UNQUOTE. HE DENIED THERE WAS ANY RISK OF NOISE POLLUTION, AND SAID THAT NOT ONLY HAD THERE BEEN DELAYS IN SAND DELIVERY BUT OVER A SHORT PERIOD THE PRICE HAD GONE UP FROM USD 1.3 A CUBIC METRE TO USD 4.4. ON THE SAME DAY IT WAS ANNOUNCED IN MACAU THAT THE AIRPORT COMPANY HAD AGAIN POSTPONED A DECISION ON THE CONTRACT FOR THE RUNWAY AND THAT MEMBERS OF THE BOARD QUOTE CLOSE TO CHINA UNQUOTE VOTED AGAINST THE GOVERNMENT'S PROPOSAL TO SIGN A CONTRACT NOW.

3. A FEW DAYS LATER LU PING, AT A WORKING GROUP MEETING OF THE MACAU BASIC LAW DRAFTING COMMITTING IN SUZHOU, DENIED THAT CHINA WAS TO BLAME FOR ANY DELAYS AND SAID CHINA HAD GIVEN THE PROJECT ITS APPROVAL AS EARLY AS 1979. HE ALSO SAID HE COULD NOT UNDERSTAND HOW THE ESTIMATED PRICE OF THE AIRPORT WAS NOW 5.5 BILLION PATACAS INSTEAD OF THE ORIGINALLY BUDGETED 3.5 BILLION.

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