TNAG-2727-FCO40-3933-Hong-Kong-political-parties-Association-for-Democracy-and-Pe-1993 — Page 19

3.1

PART III

The reason for the rows over the airport projects is mainly because of the different

the different point of views on the Airport- related financing plans. The Hong Kong Association for

Democracy and People's Livelihood has its own proposal these plans.

Apportionment of Expenses by sources of Funds.

Non-recurrent expenditure

Equity injection

Borrowing

Private participation

Total

Amount in $billion

60

40

35

25

160

projects.

Distribution of expenditure on non-Government funded ACP

(Amount in Billion)

Airport Railway

Chek Lap

Kok

Western Harbour

Total

(AR)

Airport

(CLK)

Crossing (WHC)

on

32

40

Equity injection

| Borrowing

25

10

35

Private Participat

18

7

25

ion

100

3.2

ADPL thinks that the Hong Kong government should solve the financial problems by using the principle of "increasing equity injection and decreasing borrowing'. Nevertheless, the government still needs to look for a balancing point under this principle to avoid affecting people's livelihood and public expenditures adversely.

Land Fund--As way out for the CLK project

Borrowings from the Land

Land Fund at 8% interest

interest rate for investment into infrastructure development will help reduce the amount of interest payments that would have been payable to overseas financial institutions. ADPL thinks that the British and Chinese governments should consider this suggestion positively.