TNAG-2412-FCO40-3507-Hong-Kong-Port-and-Airport-Development-Strategy-(PADS)-pres-1992 — Page 36

GOVERMENT HOUSE HUNG KUNG.

THU

1/

PG.08

-5-

Explaining the land premia

premia proposals,

Mr

Yeung said:

the

Chinese proposal for

"In responding to the

Hong Kong Government's half of the Airport

Railway land premia to be used on the Airport

Railway, we have come to the conclusion that it is logical to use the full $40bn land premia accruing

by 1997, and to use it both for the Airport

Railway and for the Airport.

"This is in accordance with annexe three in

the Joint Declaration which provides for the SAR

Land Fund to be used to finance land development

and public works.

the

"We have proposed το the Chinese side that land grants involved in these proposals should be agreed now as a complete package, without the need for further reference to the Land Commission

each year. They should also be outside the normal

annual land disposal programme which needs to go ahead as planned. Thus, this proposal will not significantly reduce either

projected fiscal reservos up to 1997, nor the

projected size of the SAR Land Fund.

also

the Government's

MI Yeung said that in addition to the proposal relating to land premia, the Chinese side proposed that separate accounts should be drawn up, so as to distinguish between the capital costs . and revenues of the Airport Railway and the rest of the MTR system. "We have agreed to this

proposal,

said Mr Yeung,