TNAG-2769-FCO40-3986-Hong-Kong-and-the-media-interviews--press-briefings-and-the--1994 — Page 243

the necessary legislation.

How long will talks last (Various suggested deadlines)

We want to give talks every chance of success. But there is not infinite time. We need to have legislation in place in good time for local elections in 1994 and the Legislative Council

elections in 1995.

NEW AIRPORT

All agree that Hong Kong needs a new airport if it is to

remain an important international trade and financial centre.

-

Hope that agreement on the overall financing arrangements can

be reached with the Chinese soon.

- In the meantime, we are maintaining momentum on the airport to avoid expensive slippages and cost increases.

- The project represents excellent value for money. Any

substantial cost reduction would compromise the scope of the project and would not lead to the construction of the first rate

airport which Hong Kong needs.

ECONOMY

GDP

Economic fundamentals in Hong Kong remain very strong.

Probably sounder than in any other community in the world.

grew by 5% in 1992, and is expected to remain in the range of

5-5.5% in 1993. Trade with China continues to boom. Investment

will be sustained by Government infrastructure projects.

bullpts.PR.JRB