THE Provisional Airport Authority (PAA) is expected to conduct a series of value-for-money studies and also implement a localisation policy to address major concerns expressed by China over the running of the airport body. It is understood expatriate dominance of the PAA's top management and fears of a lack of monitoring of spending are worrying officials in Beijing, who have yet to endorse management and financing proposals for the new airport at Chek Lap Kok. The chairman of the Airport Consultative Committee, Wong Po-yan, said he was worried the future corporation's chief executive officer would become too powerful if more checks were not applied. Government sources said a copy of the Airport Corporation Bill, needed to turn the PAA into the airport's permanent management organisation, had already been passed on to China but no official comment had yet been made. A source said the Hong Kong Government would have to prove to Beijing that the top positions of the corporation would not all be filled by expatriates. Such a policy, however, was not built into the proposed bill as the Government considered it inappropriate to legislate on appointments. The PAA board recently endorsed an employment policy stipulating jobs at all levels should be open to locals before any search was made overseas. Spokesman Phillip Bruce said the policy was a formalisation of existing recruitment procedures. ''We will recruit whenever possible in Hong Kong,'' Mr Bruce said. However, there had been instances when expatriates were brought in through executive searches or personal connections for jobs advertised locally. The PAA would ensure this did not happen again and would offer similar terms to expatriate and local officers applying for the same job. The recruitment board comprises Chief Executive Officer Dr Henry Townsend, David Gledhill, Secretary for Economic Services Gordon Siu Kwing-chue, and Director of Civil Aviation Peter Lok Kung-nam. The PAA would in future give preference to permanent residents of Hong Kong for jobs at all levels, including the chief executive officer's post, the source said. However, because of the difficulty in identifying local expertise for building a new airport, it was likely during construction the chief executive officer's position would continue to be filled by an expatriate. Another source said although the employment policy would not apply to members of the board, it would be astonishing if the Governor should appoint people from outside Hong Kong to be the non-executive chairman and board members of the future corporation. The Government has also decided to commission a commercial auditor to conduct value-for-money assessments, even though these are not stipulated in the proposed legislation. The source said the studies would be modelled on the format and procedures currently adopted by the Director of Audit, to discover whether the airport body had made any mistakes in judgment and procedures. Noting Legislative Councillors' demand for a monitoring role on the PAA's disposal of funds, some of this information, such as a summary of the findings, could be incorporated in the body's annual report. The PAA had already ordered its internal auditors to conduct value-for-money management studies in some areas of its operations. It is understood another option to be considered by the Government calls for officials from the Economic Services Branch and representatives of the airport body to hold regular forums with legislators to exchange views and provide an opportunity for the lawmakers to raise questions. This is seen as a way to pacify legislators who have pressed for the future corporation to come under the scrutiny of the Director of Audit and the Legislative Council's Public Accounts Committee. The White Bill published on Monday deprives the Director of Audit and legislators of a direct role in scrutinising the books of the Airport Corporation. The Director of Audit will only be allowed access to these accounts in the event of serious government concern, according to the bill.