Railway talks ruled out
The Government has ruled out formal talks with China on the Western Corridor Railway project until after the cost has been worked out by consultants, a senior government official says.
The official said yesterday that the controversial issue had to be handled carefully in order to avoid another major dispute over the cost. The project was originally estimated to cost $12 billion but it was then revised to $20 billion.
The increase in estimated cost triggered fierce criticism from Chinese officials who were sceptical about the financial viability of the railway project.
The official said it would only create more friction if the Government held talks with China before a firm estimate had been worked out.
He said China would be consulted before a decision was taken.
Chinese officials and some local Preparatory Committee members have blasted the Government for failing to send officials to brief a committee sub-group on the project during a meeting in Zhuhai last month.
Estimates now put the cost of the railway project at $80 billion.
'We've only got more than $100 billion in our reserves.
'If you need more than $80 billion, we have to look at all the figures before taking any decision,' he said.
'I myself have not seen the report. Kwong Ki-chi [Secretary for the Treasury] has only read it once.
'Only if we find it OK will we talk to the Chinese,' the official said.
He accused some local Preparatory Committee members of trying to fuel the dispute by criticising the project and the Kowloon-Canton Railway Corporation's move to award consultancy studies on the project. 'We got to commission consultancy studies on such a . . . project in order to get a more detailed proposal,' he said.
