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positive attitude to reasonable proposals.
The Hong Kong
Government will plan its finances so as to leave not less than HK$ 25 billion in reserves in 1997.
6. Separately, in accordance with the MOU, the HKG will establish an Airport Authority. HKG have, in addition, set up a Consultative Committee on the airport, also agreed in the MOU. This is a committee of 50, and includes academics and
businessmen.
The MOU has been widely acclaimed both in Hong Kong and internationally as a good and workable agreement. It has rightly given a major boost to confidence in Hong Kong.
1.
8. At a meeting in Rio on 12 June 1992 the Prime Minister and Premier Li Peng agreed that high level talks would be held to carry forward negotiations on the financing arrangements for the Airport Authority and the Mass Transit Railway Corporation. These talks took place in Peking, 3-6 July, and although some progress was made there remained a number of issues to be resolved with the Chinese. Further meetings of the Airport Committee have recently taken place and the Chinese side is
presently considering new financing proposals put forward by the British side, which build on Chinese suggestions. In an address to the Legislative Council on 7 October the Governor said
that a delay in completing the airport would be a great
pity for Hong Kong, but equally so for China. On return from
a visit to Peking on 23 October, the Governor said that in
the absence of a comprehensive agreement with the Chinese, the
Hong Kong Government would do what it could to keep work
going on the airport in accordance with its obligations under
the MOU.
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9. As the tender of the largest airport contract, the airport platform, was only valid until 30 November, in order to avoid delay and incurring extra expense, the Hong Kong Government sought funds from the Finance Committee of LegCo to enable them to proceed with the contract on schedule. The Finance Committee approved the application on 27 November and the contract was signed by the PAA on 30 November 1992.
British Interests
10. British and British/Hong Kong companies have been very successful in securing consultancy contracts and a group led by British Airports Authority has won the contracts to design the new airport terminals. The £610m airport platfrom contract has been awarded to the Japanese-led "Airport Platform Contractors" consortium, in which Costain and Ballast Nedham (British Aerospace) have a 42% interest. The contracts for the main bridge (Lantau Fixed Link) and Phase 1 of the North Lantau Expressway have been won by consortia which include British companies. These are the 3 largest airport-related contracts to
have been awarded so far.
11.
British companies will also bid for contracts involving the
rail link, which are due to come on stream later.
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Daco 1A
I age TV
Dras 14
Daca
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Mr Whitheind
Mr Ricketts, HKD
From :
Date
20 JAN 1993
DESK OF
EX
PA
19 January 1993
C
TRAFALGAR HOUSE
1.
On a
Sir Gordon Manzie telephoned me this afternoon for
I told him there an update on the situation in Hong Kong. were signs of a moderation of the Chinese position. point of particular interest to him, Chinese spokesmen were now turning aside questions on the possibility that Huangtian airport might be developed as an alternative to the new Hong Kong airport, and reiterating their hope that the aiport MOU could be implemented.
2.
Sir Gordon said that Trafalgar House had put out ten enquiries to contractors who might be interested in
Five had said undertaking the assembly of the bridge. they were not interested: the terms and conditions laid
Of the down by the Hong Kong Government were too tough. other five, two were unsuitable. Of the remaining three the Anglo-Japanese Consortium preferred the contractor who There was however wished to assemble the bridge in China. some nervousness about going ahead, given the heightened risk that China might intervene to frustrate performance of the contract.
3. Sir Gordon said his company had raised this point with the Hong Kong Government, with the request that the very tough penalties included in the contract should not be invoked if there were delays caused by the action of the Chinese authorities. The first reaction, at the level
His of the Director of Highways, had been very negative. inclination, if no headway could be made at this level, would be to escalate the matter to a level where the political factors would be given greater weight. thinking of taking the matter up with Sir D Ford.
He was
4. I said that this was essentially a matter between the Consortium and the Hong Kong Government (Sir Gordon agreed). But my personal feelings that the political dimension would at least be better appreciated if he took the matter up at a higher level. I hoped he would keep us in touch.
Cotten
CO Hum
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