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Responding on Container Terminal Nine, the Hong Kong government said that since the project involves a land grant, not a franchise, there was no requirement to consult the Chinese at the JLG. A Hong Kong government spokesman said that the grant of land for the terminal was included in the 1992-93 land disposal program approved by the Sino-British Land Commission in March 1992 in accord with the Joint Declaration. The Hong Kong government said that the Chinese threat to scrap contracts violated the Basic Law, which stipulates that contracts which are valid under Hong Kong's existing laws will continue to be valid in the Hong Kong Special Administrative Region.
A major victim of the PRC-U.K. dispute was Hong Kong's new airport project. Despite the signing of the Sino-British Memorandum of Understanding on the new airport in September 1991, the Chinese refused to approve the financing package, making international borrowing difficult, if not impossible, and threatening costly delays in construction. Nevertheless, work began on the $1 billion plus site preparation project and other major contracts for terminal design and transport infrastructure were let. It will be difficult to complete the airport without Chinese approval, however, mainly because international financing will be unavailable or prohibitively costly.
The Sino-British dispute polarized opinion within the Hong Kong community, Pro-democracy groups such as the United Democrats supported the proposals but argued for a faster pace of democracy to safeguard the promised "high degree of autonomy". On the other hand, many in the influential business community criticized the Governor's proposals, arguing that a smooth transition in 1997 and convergence with the Basic Law were paramount. They have called for the proposals to be scrapped in favor of models acceptable to Beijing.
In November, Legco, by a vote of 32-21, passed a motion noting that Legco is "in general support" of the reform package and urging the British and Hong Kong governments to "comply with the principles of openness, fairness and acceptability to the people of Hong Kong" in their discussions with Beijing.
Public opinion polls showed substantial support for the substance of the Governor's proposals and for him personally.
(E) Bilateral Talks to Resume?
Governor Patten stated he was not prepared to proceed with democratization at a faster pace than was acceptable to the Hong Kong people, as expressed through their representatives in the Legislative Council. The legislative package consists of two bills: one to establish a boundary and election commission and a second comprehensive one containing all other proposals. The first bill was introduced in Legco on February 10. second bill was delayed several times while awaiting
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