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UNCLASSIFIED
050101
MDHIAN 0055
PROJECT. THE PREVIOUS SET OF PROPOSALS THAT WE HAD MAXIMISED HONG KONG'S CREDIT RAISING AND THE AMOUNT OF MONEY THAT WE CAN REASONABLY BORROW, BECAUSE HONG KONG IS SUCH A SUCCESSFUL COMMUNITY. SO WE'VE TRIED THAT APPROACH AND HAD IT TURNED DOWN. NOW WE TRY THIS OTHER APPROACH AND I DON'T THINK THAT IT IS POSSIBLE INDEFINITELY TO SPEND ONE'S WEEKENDS WORKING OUT DIFFERENT SORT OF PROPOSALS, IN THE HOPE THAT SOMEWHERE ALONG THE LINE, ONE WOULD HIT THE JACKPOT.
QUESTION: HOW DO YOU RESPOND TO THE CRITICISM THAT THE PRESENT PROPOSAL ENTAILS THE FUTURE SAR GOVERNMENT TO PAY A SUBSTANTIAL AMOUNT OF THE MONEY?
GOVERNOR: I DON'T THINK THAT IT'S FAIR TO EXPECT THE HONG KONG TAXPAYER TO MAKE ALL THE CONTRIBUTION TODAY WHILE ALL THE GAIN IS MADE BY THE SAR TOMORROW. LET'S JUST REMEMBER THAT IN 1997 THE SAR WOULD RECEIVE THE BIGGEST DOWRY SINCE CLEOPATRA. IT WILL RECEIVE ENORMOUS RESOURCES IN THE EXCHANGE FUND. IT WILL HAVE A PUBLIC ACCOUNT WHICH IS IN SURPLUS. THAT IS A TRIBUTE TO THE ENERGY AND THE DEDICATION AND THE HARD WORK OF THE PEOPLE OF HONG KONG. WE COULDN'T GO OUT THERE AND TELL THE PEOPLE OF HONG KONG THAT WE HAD TO CUT THEIR PUBLIC EXPENDITURE PROGRAMMES IN THE NEXT FEW YEARS IN ORDER THAT ALL THE GAINS FROM THIS PROJECT SHOULD ACCRUE TO THE SAR AFTER THAT. THAT WOULDN'T BE FAIR TO PEOPLE. IT DON'T THINK THAT ANYBODY COULD SERIOUSLY PUT IF FORWARD AS A PROPOSITION.
QUESTION: APART FROM FAIRNESS, HOW ABOUT SAYING THAT THE BRITISH PROPOSAL IS IN BREACH OF THE JOINT DECLARATION AND BASIC LAW?
GOVERNOR: THAT SIMPLY DOESN'T STAND UP. MR GALSWORTHY SAID ON SUNDAY THAT IT WAS ABSURD TO ARGUE THAT IT WAS IN BREACH OF THE JOINT DECLARATION OR THE MEMORANDUM OF UNDERSTANDING. I POINTED
OUT THAT IT WAS A CHINESE OFFICIAL WHO SAID THE OTHER DAY THAT IT WOULD BE PERFECTLY REASONABLE TO CONSIDER USING THE LAD FUND TO INVEST IN THE PROJECT.
THANK YOU VERY MUCH INDEED.
PATTEN
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