CONFIDENTIAL
FM HONG KONG
TO IMMEDIATE FCO
TELNO 2783
OF 28060OZ NOVEMBER 92
CONFIDENTIAL
HKA 182/3
INFO IMMEDIATE PEKING, UKREP JLG HONG
TOP COPY DIST?
188
114143
MDHIAN 9824
NEW AIRPORT: AIRPORT PLATFORM CONTRACT: DEBATE IN FINANCE
COMMITTEE.
SUMMARY
1
FINANCE COMMITTEE DEBATED HKG'S FUNDING APPLICATION FOR THE AIRPORT PLATFORM FOR OVER FIVE HOURS ON 27 NOVEMBER. APPLICATION WAS PASSED 27 TO 25. STRONG CHINESE PRESSURE ON SOME LEGCO MEMBERS, AND VIGOROUS LOBBYING BY HKG. BUT SIGNS THAT LOCAL CHINA SUPPORTERS WERE RECEIVING AMBIGUOUS SIGNALS FROM PEKING.
DETAIL
2 =
WE ISSUED PAPERS TO SEEK FUNDING OF AN ADVANCE OF HKD 8630 MILLION ON 19 NOVEMBER. THEY WERE DISCUSSED IN DRAFT BY A LEGCO AD-HOC GROUP ON 20 NOVEMBER. EARLY INDICATIONS WERE THAT UDHK AND CRC WOULD SUPPORT. ABOUT HALF OF LEGCO INDEPENDENTS APPEARED TO BE IN SUPPORT AT THAT TIME.
3. UDHK MAINTAINED A SUPPORTIVE LINE THROUGHOUT. BUT THEY CLEARLY WOULD HAVE BEEN HAPPY TO SEE A DEFIANT 'GO-IT-ALONE' LINE FROM HKG. THEY SAW THE OUTCOME OF THE VOTE ON THIS ISSUE AS AN IMPORTANT TEST OF WHETHER HKG COULD GET A MOTION THROUGH LEGCO ON SOMETHING TO WHICH CHINA APPEARED CLEARLY OPPOSED.
4. UDHK TRIED FOR SOME TIME TO PRESSURE US TO MAKE A CLEAR STATEMENT ON WHAT WE WOULD ULTIMATELY DO IF CHINA NEVER AGREED ON THE AIRPORT FINANCIAL PACKAGE. WE RESISTED ON THE GROUNDS THAT TO MAKE SUCH A STATEMENT WOULD INCREASE CHINESE SUSPICIOUS THAT WE WOULD GO IT ALONE' ON THE AIRPORT: THIS WOULD RAISE THE POLITICAL TEMPERATURE. UDHK ACCEPTED THIS ARGUMENT AND DROPPED THEIR DEMAND.
5. CRC, UNDER INTENSE LOBBYING FROM CHINA, ATTEMPTED TO GET OUR PROPOSALS CUT BACK. THEIR TACTIC WAS TO PROFESS PUBLIC SUPPORT FOR THE AIRPORT PLATFORM, WHILE AT THE SAME TIME TRYING TO CUT
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