TNAG-2921-FCO40-4196-Visits-and-proposed-visits-by-Alastair-Goodlad--Minister-of--1993 — Page 55

4.

NEW AIRPORT

BULL POINTS

All agree that Hong Kong needs a new airport if it is to remain an international trade and financial centre.

Have done our very best to take account of Chinese problems with financing arrangements.

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

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.

ARE WE STILL KEEPING TO THE MEMORANDUM OF UNDERSTANDING (MOU)?

The Airport MOU requires us to complete as much as possible of the Airport Core Programme before 1997. We intend to fulfil this responsibility. We have not deviated from the MOU in our financing proposals, nor in the way we are proceeding with the project.

CAN AIRPORT BE COMPLETED ON SCHEDULE?

At present, the major airport contracts are proceeding on schedule. Whether the airport can be completed by 1997 depends on whether agreement can be reached with the Chinese on the financing arrangements.

WILL AIRPORT COSTS GO UP IF NO AGREEMENT?

If the airport projected is not completed to schedule cost increases will be unavoidable.

LINKAGE WITH CONSTITUTIONAL ISSUES?

Our view is that these quite different issues should be dealt with separately, and on their merits. Chinese officials have frequently said the same thing.

All agree that Hong Kong needs a new airport if it is to remain an international trade and financial centre.

Hong Kong Government getting on with work on the Airport where possible. Still need to resolve financing issues with the Chinese: hope this can be done soon so that the airport can be ready on time.

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