TNAG-2790-FCO40-4029-Future-of-Hong-Kong-1993 — Page 77

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China interest*

UK interest*

X

X

Issue

Objective/explanation

Secretary for Treasury (Cont'd)

Airport Finance

To secure Chinese endorsement for the financing arrangements for the Airport Railway and the PAA.

Present status/progress

The JLG's Airport Committee met on 4 and 18 June, but so far no agreement has been made regarding the financing packages. We are meanwhile proceeding in a step by step way, having secured LegCo approval for a $562 million capital advance for PAA to continue its essential operations until 31.3.94 and critical design work related to the airport site preparation contract. The next major hurdle is to get Chinese agreement in principle for the franchises at the airport. The Airport Railway programme will also soon start to slip unless agreement is secured on AR finance.

CONFIDENTIAL

機密

CONFIDENTIAL #

機