TNAG-2767-FCO40-3984-Hong-Kong-and-the-media-interviews--press-briefings-and-the--1993 — Page 10

JLG

Our view remains that if problems were dealt with on their merits they could be quickly solved.

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.

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.

If the airport has to be completed later rather than sooner that will be a pity, and it will cost more.

Regret lack of progress in recent months. Joint Declaration commits both Governments to closer co-operation in the JLG in the second half of the transition period. That is what we expect to

see.