complete as many as possible of the airport core projects before
30 June 1997; to consult the Chinese side on borrowing of over
HK$5 bn with maturities to plan their finances with the firm objective of leaving not less than HK$25 billion in their fiscal
reserves in 1997.
31. To facilitate cooperation, the MOU established an Airport
Committee under the Sino-British Joint Liaison Group to act as the
forum for consultation on the granting of major airport contracts and franchises. The MOU was widely acclaimed, both in Hong Kong
and internationally, as a good and workable agreement and gave a
major boost to confidence. Since then, the Hong Kong Government
have put forward two alternative financing packages. Despite extensive discussions during 1992, agreement has not yet been
reached with China on an overall financing package for the Airport Authority and Mass Transit Railway Corporation. In the absence of
an overall agreement, the Hong Kong Government are adopting a
step-by-step approach on building the airport, to fulfil the
obligations under the MOU and to avoid slippages and expensive
cost increases. The Hong Kong Government still hope to be able to
reach an overall agreement with the Chinese on financing, to
enable the airport to open on schedule.
BRITISH INTERESTS IN HONG KONG
32. Britain continues to have an enormous stake in Hong Kong's
continuing prosperity. UK visible exports to Hong Kong were worth
£1.62 billion in 1992 and invisible exports were also worth over
£1 billion. Hong Kong is now the UK's second largest market in
Asia, after Japan. Since 1987, UK exports to Hong Kong have risen
by 60%, nearly twice as fast as UK total world-wide exports (35%).
33.
Over 1,000 British companies have operations in Hong Kong.
It is difficult to put a figure on total UK investment, but 10 of
select.cttee.PR.JRB
No comments yet.
Private notes are available after approval.