TNAG-2412-FCO40-3507-Hong-Kong-Port-and-Airport-Development-Strategy-(PADS)-pres-1992 — Page 33

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GOVERMENT HOUSE HONG KONG.

THU 17 SEP 92 11:09.

PG.05

-2-

The main features of the new proposals are:

1. The land granted to the MTRC up to 1997 in connection with the Airport Railway will be additional to Hong Kong's normal land disposal

programme;

2.

Land

premia

which is to be

will be invested

estimated at about $40bn,

paid by the MTRC before 1997,

as additional paid-up equity

in the AA and MTRC. We have suggested it might

be split as follows:

a) a $25bn increase, from $16.6bn to

$41.6bn.

in Government

equity in the AA;

paid up

b) a $15bn increase, from $3.7bn to $18.7bn, in Government paid up equity

in the MTRC;

3.

Cancellation of callable equity totalling

$21bn for the AA and the MTRC;

4.

Reduction in total borrowings by the AA

and the MTRC by at least $40bn;

5.

two

A reduction of the order of $10bn in the

interest

corporations '

1

combined

and

financing charges.