TNAG-2725-FCO40-3931-Hong-Kong-political-parties-Liberal-Party-1993 — Page 27

CONFIDENTIAL

pr. Liberal

party

053145 MDHIAN 8598

14

CONFIDENTIAL

FM HONG KONG

TO IMMEDIATE FCO

TELNO 1136

OF 130803Z JULY 93

HKB 011/11

RECEIVED IN FEGISTRY

19 JUL 1993

DESK OFFICER

REGISTRY Actor Toot

INFO IMMEDIATE PEKING, UKRI JEG HONG KONG

1

OUR TELNO 1128: WESTERN HARBOUR CROSSING (WHC)

THE LIBERAL PARTY HAS NOW AGREED TO SUPPORT THE ENACTMENT OF THE WESTERN HARBOUR CROSSING BILL, WITHOUT MAJOR AMENDMENT. IN RETURN FOR THEIR SUPPORT, THEY HAVE REQUESTED THAT IF THE SHAREHOLDERS' TARGET RETURN ON INVESTMENT IS EXCEEDED IN THE FIRST 3 YEARS OF THE FRANCHISE, THEN THE SURPLUS SHOULD BE PLACED IN THE TOLL STABILITY FUND TO BE ESTABLISHED UNDER THE LEGISLATION. THIS FUND IS TO BE USED TO DEFER FUTURE TOLL INCREASES.

2. THE LIBERAL PARTY'S PROPOSAL HAS BEEN AGREED BY THE TUNNEL CONSORTIUM (INCLUDING CITIC), AND IS ACCEPTABLE TO THE CHINESE.

3. IT NOW APPEARS THAT GOVERNMENT WILL HAVE THE MAJORITY IT NEEDS TO SECURE PASSAGE OF THE BILL AT THE LEGCO MEETING ON 21 JULY, ALTHOUGH THE MARGIN COULD BE SLIM AND WE WILL NEED TO CONTINUE OUR LOBBYING EFFORTS.

PATTEN

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MAIN

.HK POLICY

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DISTRIBUTION

72

NTCD

HKD

PUSD

FED

LEGAL ADVISERS//MS BARRETT

LEGAL ADVISERS//MISS BROOKS

LEGAL ADVISERS//MR GILES

NEWS D

PLANNERS

RAD

PS

PS/MR GOODLAD

SIR J COLES MR HUM

ADDITIONAL

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CAOFF//SIR R BRAITHWAITE (DIO) CAOFF //MISS NEVILLE-JONES

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