CONFIDENTIAL
164534
f MDLIAN 1
4. WE ARE, AS YOU KNOW, CONSULTING THE CHINESE ON THE PAA FINANCING PLAN AND THE AIRPORT RAILWAY AGREEMENT BECAUSE THESE ARE AGREEMENTS WHICH CONTAIN GOVERNMENT OBLIGATIONS STRADDLING 1997. BUT WE DO NOT PROPOSE TO CONSULT THE CHINESE ON PAA AND MTRC GRANTS TO, OR CONTRACTS WITH, THIRD PARTIES STRADDLING 1997 UNLESS THESE IMPOSE OBLIGATIONS ON THE GOVERNMENT (E.G. GUARANTEES OF CONTINGENT LIABILITIES).
5.
WE WILL NEED FAIRLY SOON TO CONSIDER THE QUESTION OF FRANCHISES SPANNING 1997 WHICH ARE GRANTED BY THE AIRPORT AUTHORITY, E.G. FOR AIR CARGO AND CATERING. THE AIRPORT AUTHORITY WILL PROBABLY AWARD THE FIRST ONES IN 1993. SINCE THESE WILL NOT BE GRANTED BY THE HKG, THEY DO NOT STRICTLY FALL WITHIN THE TERMS OF PARAGRAPH C(I) OF THE AIRPORT MOU. THE CHINESE WILL ALSO KNOW OF, AND HAVE SOME INFLUENCE OVER, THEM THROUGH THEIR NOMINEE ON THE AIRPORT AUTHORITY. BUT WE RECOGNISE THAT THEY COULD BE
SENSITIVE FOR PEKING. WE HAVE NOT YET DECIDED ON THE BEST WAY TO
TACKLE THIS PARTICULAR ISSUE.
WILSON
YYYY
ΜΑΙΝ
30
DISTRIBUTION
34
.HONG KONG AIRPORT RESTRICTED
HKD
LEGAL ADVISERS//MISS BROOKS
PUSD//HD
ECONOMIC ADVISERS//HD
ERD//HD
FED//HD
NEWS D//HD
PLANNERS//HD
RAD//MR WYE
PS
PS/LORD CAITHNESS
PS/PUS
SIR J COLES
MR BONE
MR BURNS
ADDITIONAL
4
SIR P CRADOCK (NO 10)
MS D CORNER CABINET OFFICE
MR ELSTON BANK OF ENGLAND
MR MCINTYRE HMT
NN NN
PAGE
2
CONFIDENTIAL
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