TNAG-2415-FCO40-3517-Hong-Kong-Port-and-Airport-Development-Strategy-(PADS)-fina-1993 — Page 13

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23-DEC-1992

17:22

BRITISH TRADE COMM

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3.

Finally, airports are long term investments, and our cash flows though very strong, will not easily allow us to repay debt in equal instalments over eight and a half years from 1997, which is the conventional structure. There is an excellent case for going to 10 or 12 years. (This is allowed for power stations, on similar grounds, and I believe also that China itself would generally qualify for 10 year repayment terms.)

I would very much welcome your guidance and assistance. Any indication you could give us on the above matters, which we recognize would remain subject to satisfactory resolution of outstanding credit issues, would be much appreciated.

Yours sincerely,

Richard alle

Richard Allen

Chief Executive Officer