TNAG-2625-FCO40-3816-Visit-by-Douglas-Hurd--Secretary-of-State-for-Foreign-and-Co-1992 — Page 61

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

WILL YOU GIVE THE CHINESE CONCESSIONS ON CONSTITUTIONAL

ISSUES TO GET AIRPORT BACK ON TRACK?

- We approach these issues strictly in accordance with the MOU. There is no connection between them and the political

issues.

MEMORANDUM OF UNDERSTANDING SIGNED BY PRIME MINISTER

USELESS

Nonsense: is an expression of Britain and China's

commitment to the project and has allowed HKG to get on with

the work.

WILL THE AIRPORT CORE PROGRAMME STAY WITHIN BUDGET?

The use of fixed price lump sum contracts and a strong

project management system to control timing and programming

will minimize the risk of cost overruns.

PROJECT TOO EXPENSIVE

...

Hong Kong's reserves in a very healthy state. Must also

remember considerable accumulations in the Land Fund, which

will be handed over to the SARG in 1997.

- The project has been planned to be cost-effective. cost to Government has not gone up. The HKG has adequate

reserves to meet its share of the cost. Private sector will

put up substantial funding in the form of equity and bans.

The

FAVOURITISM SHOWN TO BRITISH FIRMS?

Not true. The HK Government has always operated on the basis of fair and open competition.

No country is given

KS1ADZ/6

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