CONFIDENTIAL
FM HONG KONG
TO IMMEDIATE FCO
TELNO 751
OF 10110OZ MARCH 92
INFO IMMEDIATE PEKING
F.
CONFIDENTIAL
HKA
182/7.
5
155540
MDHIAN 6182
TOP COPY Q DIST?
Pa
1013
THE AIRPORT CORE PROGRAMME: PROGRESS REPORT FOR FEBRUARY 1992.
SUMMARY
1.
MANY KEY ELEMENTS OF THE ACP ARE REACHING A DECISIVE STAGE.
WE EXPECT MOST OF THE MAJOR CONSULTATIONS WITH THE CHINESE SIDE IN THE AIRPORT COMMITTEE (AC) TO TAKE PLACE WITHIN THE NEXT SIX
MONTHS.
OVERALL COST OF THE ACP
2. WE PROMISED FINANCE COMMITTEE IN JULY 1991 THAT WE WOULD REPORT TO THEM ON THE OVERALL COST OF THE ACP FROM TIME TO TIME. NEW MEMBERS HAVE POINTED OUT ON A NUMBER OF OCCASIONS SINCE THEN
THAT THEY NEED AN OVERVIEW OF THE COST IF THEY ARE TO CONSIDER INDIVIDUAL ITEMS IN PROPER CONTEXT. THE CHINESE SIDE OF THE AC HAS ALSO INDICATED INFORMALLY THAT THEY FACE THE SAME PROBLEM. WE
HAVE THEREFORE ASSUMED THAT AN UPDATED OVERALL COST STATEMENT FOR
THE ACP IS A PREREQUISITE OF CHINESE ACCEPTANCE AND FINANCE
COMMITTEE APPROVAL OF FUTURE ACP ITEMS.
3. THE NEW AIRPORT PROJECTS CO-ORDINATION OFFICE HAS CARRIED OUT A THOROUGH REVIEW OF ACP COSTS. THEIR PRELIMINARY ASSESSMENT, WHICH WE ARE EXAMINING CRITICALLY AND ARE LIKELY TO REDUCE, IS THAT THE OVERALL COST OF THE ACP (INCLUDING GOVERNMENT AND
PRIVATE SECTOR SPENDING) HAS RISEN BY DOLLARS 15.1 BILLION FROM DOLLARS 98.6 BILLION TO DOLLARS 113.7 BILLION: AN INCREASE OF 15
PERCENT IN REAL TERMS. (WE ARE USING 1991 PRICES THROUGHOUT THIS TELEGRAM FOR EASE OF COMPARISON).
4
-
THESE NEW ESTIMATES ARE MAINLY ATTRIBUTABLE TO:
(A) THE ESTIMATE FOR THE AIRPORT RAILWAY (AR) FROM DOLLARS 12.5 BILLION HAS INCREASED TO DOLLARS 22.2 BILLION (THE REASON FOR WHICH IS SET OUT IN OUR PAPER FOR THE CHINESE FAXED TO YOU ON 30 JANUARY 1992 (MY TELNO 292):
PAGE
CONFIDENTIAL
1
No comments yet.
Private notes are available after approval.