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Chris Yeung

HONG Kong's latest airport financing package ''has directly addressed'' concerns raised by China between June and August last year, according to sources close to the Chinese State Council's Hong Kong and Macau Affairs Office.

  ''The fourth package has comprehensively responded to our proposal,'' the source said.

  Beijing still needed time to fully assess the implications of the new offer and it was unlikely the Sino-British Joint Liaison Group Airport Committee would resume talks in the next week or two.

  Confirming that China had already received the new offer, Foreign Ministry spokesman Wu Jianmin said the Chinese side was ''studying it earnestly''.

  He reiterated that the issue of a new airport for Hong Kong should be settled in accordance with the Memorandum of Understanding and the British side should also demonstrate sincerity.

  The Executive Council on Tuesday endorsed the new financing package that would see more than $60 billion pumped into the Provisional Airport Authority and Mass Transit Railway Corporation to fund the airport and railway projects.

  The new funding level would reduce the debts borne by the two corporations to about $20 billion.

  The offer is a major concession from Britain, in that it has substantially increased the equity injection by $15 billion from the $45 billion ceiling proposed in the third financing plan last June.

  According to the source, China has made a package of counter-proposals on the level of debts, government equity, the sale of land and the cost control mechanism between June and August.

  These proposals call for lower debt, higher government funding and independent cost monitoring.

  The source said that it was very unlikely that China would reach any conclusion on the fourth package in the next week or two.

  ''The whole financial arrangement is and has to be a package. We need time to examine it.''   Sources said China had already made clear to the British side in June that it would agree to granting the lease of the 62 hectares of land before 1997.

  He also denied suggestions that China was firmly opposed to separating the sale of 62 hectares of land from the 50-hectare ceiling for land sale, stipulated under the Joint Declaration.

  ''As a matter of fact, the total amount of land granted each year, since 1984, had exceeded the 50-hectare ceiling,'' the source said.

  The source, however, remained cautious over whether China would agree to the latest British proposal.

  ''We can't say the problems have all been settled . . . but what I can only say is that the present proposal is a direct reply to our suggestions.''   China demanded the formation of an independent committee to monitor the costing of the project.

  But Britain disagreed and suggested that the function of the airport consultative committee be strengthened to keep a closer watch on the building cost.

  The source refused to say whether Britain had acceded to the Chinese demand for an independent cost monitoring body as part of the latest offer.

  He added: ''At least, they should spell out specifically ways to strengthen the role of the consultative committee.''   Chief Secretary Anson Chan Fang On-sang said yesterday that she believed the new financing proposal addressed concerns raised by the Chinese side.

  ''We believe that this proposal fully meets the concerns that the Chinese has expressed to us so far,'' Mrs Chan said.

  However, she refused to disclose details.

  ''I do not think that it would assist us in getting early agreement from the Chinese on financing arrangements if I chose to discuss the details now,'' she said.

  ''We would very much wish the Chinese respond with an early meeting of the Airport Committee at which we can sensibly discuss these proposals.''   But she added that the 62 hectares of land along the airport railway should be counted on top of the annual 50-hectare quota.

  ''We very much hope China can confirm the land along the rail link will be separately counted on the top of the annual quota,'' she said.



China 'warms' to new airport deal