TNAG-2779-FCO40-3998-Future-of-Hong-Kong-constitutional-development-Chinese-reac-1993 — Page 28

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MDHIAN 2637

SERIOUS AND POSITIVE ATTITUDE TOWARDS MATTER CONDUCIVE TO THE MAINTENANCE OF HONG KONG'S PROSPERITY AND STABILITY AND THE INTERESTS OF HONG KONG PEOPLE. HE REFERRED TO THE RECENT AGREEMENT ON THE LAND DISPOSAL PROGRAMME AND THE THREE FRANCHISES AND SAID THE CHINESE WOULD TAKE A SIMILARLY POSITIVE APPROACH IN THE NEW AIRPORT AND OTHER ISSUES. ON THE ELECTION TALKS, HE HOPED THAT BOTH SIDES COULD SHOW THE SAME SINCERITY.

9.

THERE WAS INTENSE SPECULATION ON WHAT HAD LED TO THE RESUMPTION OF AC MEETINGS. SOME REPORTS QUOTED SOURCES AS SAYING THAT THE AC COULD RESUME ITS MEETING MAINLY BECAUSE HKG HAD EARLIER THIS MONTH PRESENTED TO THE CHINESE A THIRD FINANCING PACKAGE WHICH WOULD INVOLVE NO CALLABLE EQUITY. HONG KONG ECONOMIC TIMES QUOTED SOURCES AS SAYING THAT IN THE THIRD PROPOSAL, THE BRITISH SUGGESTED THAT ONLY HKG'S SHARE OF THE LAND SALE PROCEEDS ALONG THE AIRPORT RAILWAY, AMOUNTING TO 20 BILLION DOLLARS, SHOULD BE INJECTED INTO THE PROJECT. THE OTHER 20 BILLION 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 BILLION DOLLARS AND THE TOTAL COSTS HAD NOT BEEN LOWERED.

10. PRESS REPORTS NOTED THAT CHEN ZIYING HAD CONFIRMED IN PEKING THAT THE BRITISH SIDE HAD RAISED A REVISED FINANCING PROPOSAL. CHEN DECLINED TO COMMENT ON WHETHER THIS WAS THE THIRD PROPOSAL.

11.

SING PAO QUOTED SOURCES AS SAYING THAT ALTHOUGH ONLY A HALF- DAY MEETING WAS SCHEDULED, THE MEETING COULD BE EXTENDED IF NECESSARY. MING PAO NOTED THAT CHINESE OFFICIALS WERE OPTIMISTIC ABOUT THE OUTCOME OF THE MEETING. THEY EXPECTED THAT THE FINANCING ISSUE WOULD BE RESOLVED VERY SOON.

D

12. BOTH WEN WEI PO AND HONG KONG COMMERCIAL DAILY IN THEIR EDITORIALS TODAY SAID THE CHINESE WERE ALWAYS SINCERE IN RESOLVING THE AIRPORT FINANCING PROBLEM AND IN UPHOLDING THE MOU. WEN WEI SAID THAT THE BRITISH SIDE SHOULD COME UP WITH A FINANCING PACKAGE CONSISTENT WITH THE MOU SO THAT THE WORK ON THE NEW AIRPORT COULD GET UNDERWAY AS SOON AS POSSIBLE. OUR PREVIOUS PROPOSALS WERE DETRIMENTAL TO THE INTERESTS OF THE SAR. THE EDITORIAL STRESSED THAT THE CHINESE SIDE WOULD CONSIDER PROPOSALS WHICH WOULD INCREASE INJECTION OF GOVERNMENT EQUITY, LOWER THE COSTS AND CONTROL AND CONSTRUCTION EXPENSES. ANY

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