TNAG-2413-FCO40-3515-Hong-Kong-Port-and-Airport-Development-Strategy-(PADS)-fina-1992 — Page 32

CONFIDENTIAL

047225

MDHOAN 109

EXPERIENCE.

(E) PARAGRAPH 31 AND PARAGRAPH 34. THE CHINESE MAY WELL ASK IN

WHAT YEARS YOU HAVE ENVISAGED THE CALLABLE EQUITY BEING CALLED. THERE WOULD BE ADVANTAGE IN GIVING AN INDICATION OF DATES IN THE PAPER, IF THAT REINFORCED THE ARGUMENT THAT IT IS HIGHLY UNLIKELY THAT ANY OF THE CALLABLE EQUITY WOULD BE DRAWN DOWN BEYOND MID 1997.

3. RAISING AERONAUTICAL CHARGES BY A FACTOR OF THREE IN REAL TERMS

IS CLEARLY AN ESSENTIAL PART OF THE REVENUE PROJECTIONS. AS YOU KNOW, WE HAVE SOME WAY TO GO BEFORE WE CONVINCE OTHERS, NOTABLY THE U.S THAT THESE ARE JUSTIFIED. A ROW ON THIS ISSUE WITH THE

AMERICANS WOULD OBVIOUSLY BE DAMAGING TO THE PROSPECTS OF RAISING

FINANCE FOR THE AA. THE SOONER THAT YOU CAN PROVIDE THE DEPARTMENT OF TRANSPORT WITH NEW UP-TO-DATE FIGURE, THE BETTER.

·

HURD

YYYY

ΜΑΙΝ

30

DISTRIBUTION

34

.HONG KONG AIRPORT RESTRICTED HKD

LEGAL ADVISERS//MISS BROOKS PUSD//HD

ECONOMIC ADVISERS//HD

ERD//HD

FED//HD

NEWS D//HD

PLANNERS//HD

RAD//MR WYE

PS

PS/LORD CAITHNESS

PS/PUS

SIR J COLES

MR BONE

MR BURNS

ADDITIONAL

4

SIR P CRADOCK (NO 10)

MS D CORNER CABINET OFFICE

MR ELSTON BANK OF ENGLAND

MR MCINTYRE HMT

NNNN

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