supp.PQ.rod
3. THE AIRPORT
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All agree that Hong Kong needs a new airport if it is to
remain an international trade and financial centre.
Have done our very best to take account of Chinese problems with financing arrangements.
Believe that agreement could be reached quickly if financing
issues tackled on their merits.
- In the meantime, we are maintaining momentum on the airport
to avoid expensive cost increases and slippages.
Linkage between airport and constitutional issues?
Our view remains that if problems were dealt with on their merits they could be quickly solved.
Can airport be completed on schedule?
At present, the major airport contracts are proceeding on schedule. Whether the airport can be completed by 1997 depends on whether agreement can be reached with the Chinese
on the financing arrangements.
Does the Chinese side's recent statement on not honouring
contracts after 1997 affect the airport?
- We are obliged under the MOU to consult the Chinese side on
major airport-related franchises or contracts straddling
1997; and the Chinese side are required to adopt a positive
attitude to such contracts. The MOU states that the
governing criteria in the case of a decision on a franchise will be the profitability and efficiency of that franchise.
Will airport costs go up if no agreement?
- If the airport has to be completed later rather than sooner
that will be a pity, and it will cost more.
No comments yet.
Private notes are available after approval.