TNAG-2561-FCO40-3744-Future-of-Hong-Kong-Special-Administrative-Region-Government-1992 — Page 29

(162

CONFIDENTIAL

HKC 370/3

CONFIDENTIAL

FM PEKING

TO DESKBY 060200Z HONG KONG

TELNO 91

OF 06012OZ JULY 92

INFO IMMEDIATE FCO, UKREP JLG HONG KONG

TOP

см

ла

Mir Bonten (2)})

174124

MDHIAN 0654

PERSONAL FOR MACLEOD, FS

FROM K Y YEUNG. IN PEKING

26)

YOUR TELNO 61: AIRPORT TALKS: LAND FUND

1.

I AM SORRY ALL THIS HAS HAPPENED. AS FAR AS I CAN RECALL, I WAS ASKED ABOUT THE LAND FUND BY AN RTHK REPORTER BEFORE I LEFT. I GAVE AN ESTIMATE OF HKD 38 BILLION (WHICH TALLIES WITH WHAT WE KNOW OF THE ACCOUNTS OF THE LAND FUND AT THE END OF 1991-92). I ALSO MENTIONED A 1997 GUESSTIMATE OF HKD 88 BILLION (OPTIONS PAPER). HENCE THE FIGURE OF HKD 100 BILLION, WHICH I SAID HAPPENS TO BE ABOUT 50 PER CENT OF FORECAST TOTAL EXPENDITURE IN 1997-98. I MADE IT CLEAR THAT THE LAND FUND WAS NOT/NOT HKG'S BUSINESS.

2. AT THE JIANGUO NEXT MORNING (3 JULY) THE SAME REPORTER AND

OTHERS GOT AT ME AS WE WERE LEAVING FOR THE FIRST ROUND OF TALKS. GIVEN THE SENSITIVITY OF THE SUBJECT, I REFUSED TO ADD ANY MORE TO WHAT HAD BEEN SAID. WHAT BECAME CLEAR LATER IS THAT AN ATV REPORTER WITH HIS TELECAMERA PICKED UP THE QUESTION AND MY REMARKS, AND THIS BECAME PUBLIC.

IS TO

5.

WE SUGGEST THAT THE BEST WAY TO DEAL WITH

SAY THAT NO OFFICIAL STATEMENT HAS BEEN MADE TO THE PRESS ABOUT THE SIZE OF THE LAND FUND. ITS APPROPRIATE SIZE CAN OF COURSE BE DEDUCED FROM FIGURES PUBLISHED ANNUALLY SHOWING TRANSFERS FROM THE

Redacted Under FOI

Exemption Sec 27(1)(a)(c)(d)

1

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