TNAG-2770-FCO40-3987-Coverage-of-Sino-British-talks-in-the-Hong-Kong-press-1993 — Page 195

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121167

MDLIAN 6392

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FM HONG KONG

TO PRIORITY FCO

TELNO 878

OF 010444Z JUNE 93

INFO ROUTINE HKGO LONDON, PEKING, UKREP JLG HONG KONG

INFO ROUTINE HKGO WASHINGTON, HKGO NEW YORK, HKGO SAN FRANCISCO INFO ROUTINE HKGO GENEVA

PART TWO OF TWO

16. THERE WAS INTENSE SPECULATION ON WHAT HAD LED TO THE RESUMPTION OF AC MEETINGS (28.5). SOME REPORTS QUOTED SOURCES AS SAYING IT WAS BECAUSE HKG HAD EARLIER THIS MONTH PRESENTED TO THE CHINESE A THIRD FINANCING PACKAGE WHICH WOULD INVOLVE NO CALLABLE EQUITY. HK ECONOMIC TIMES QUOTED SOURCES AS SAYING IN THE THIRD PROPOSAL, THE BRITISH SUGGESTED ONLY HKG'S SHARE OF THE LAND SALE PROCEEDS ALONG THE AIRPORT RAILWAY, AMOUNTING TO 20 BN DOLLARS SHOULD BE INJECTED INTO THE PROJECT. THE OTHER 20 BN DOLLARS BELONGING TO THE SAR WOULD NOT BE USED. HKG WOULD ALSO INCREASE ITS CAPITAL INJECTION INTO THE PAA AND MTRC TO REMOVE THE NEED FOR CALLABLE EQUITY. THE CHINESE WERE HOWEVER STILL NOT ENTIRELY HAPPY, SINCE THE LOANS BY THE PAA AND MTRC WOULD STILL EXCEED 5 BN DOLLARS AND THE TOTAL COSTS HAD NOT BEEN LOWERED.

17.

PRESS REPORTS (28.5) NOTED CHEN ZIYING HAD CONFIRMED IN PEKING THE BRITISH SIDE HAD RAISED A REVISED FINANCING PROPOSAL. MR CHEN DECLINED TO COMMENT ON WHETHER THIS WAS THE THIRD PROPOSAL. PAPERS NOTED (30.5) ZHANG JUNSHENG OF NCNA HK CONFIRMED HKG HAD PRESENTED A NEW FINANCIAL PACKAGE TO THE CHINESE SIDE. WHILE DECLINING TO COMMENT ON THE NEW PROPOSAL, MR ZHANG SAID HE HOPED THE BRITISH-HKG WOULD STRICTLY ADHERE TO THE MOU AND BUILD THE AIRPORT AS SOON AS POSSIBLE ON THE PRINCIPLES OF LOW-COST AND HIGH-RETURN AND WITHOUT LEAVING ANY FINANCIAL BURDEN TO THE SAR.

ZHU RONGJI

CHINESE VICE PREMIER ZHU RONGJI'S INTERVIEW WITH THE CHINESE PRESS IN TORONTO AT THE END OF HIS CANADA VISIT WAS ACCORDED GOOD COVERAGE (25.5). REPORTS NOTED MR ZHU REMARKED HE DID NOT FIND THE HK QUESTION HAD BEEN INTERNATIONALISED AND SAID IT WAS A MATTER BETWEEN CHINA AND BRITAIN. ONLY WHEN THE TWO COUNTRIES COULD STRICTLY ADHERE TO THE JD AND BL IN SOLVING PROBLEMS, THE

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